ShortAss Plans

Connecticut

An interesting article via Jamil Ragland of CT News Junkie:

Six Democratic lawmakers went on the offensive today against what they believe is a better alternative to Association Health Plans.

(Note: The phasing of this lede is confusing...it makes it sound like the lawmakers oppose the better alternative, which the article makes clear is not the case.)

Association Health Plans, which are not currently allowed in Connecticut, would allow small businesses to form a group and purchase health insurance in bulk. However, that health insurance doesn’t come with the protections of the Patient and Affordable Care Act. 

It's been quite awhile since I've written about the "Ass" part of #ShortAssPlans; here's a few basics via Robert Pear of the New York Times:

See my prior post about short-term, limited duration plans & their regulation history under the Obama, Trump & Biden Administrations.

via the Centers for Medicare & Medicaid Services:

Short-Term, Limited-Duration Insurance; Independent, Noncoordinated Excepted Benefits Coverage; Level-Funded Plan Arrangements; and Tax Treatment of Certain Accident and Health Insurance (CMS-9904-P)

Jul 07, 2023

Original story: 6/29/23:

I haven't written about #ShortAssPlans ("Short-Term, Limited Duration") healthcare policies since back in January, when it was announced that the Biden Administration would be announcing new regulations on them sometime in April 2023. Obviously that time has come and gone, but it looks like the Office of Management & Budget (OMB) is finally ready for the Centers for Medicare & Medicaid Services (CMS) to roll the new rule out:

Braying Donkey

It's been over a year and a half since I've paid much attention to #ShortAssPlans...officially "Short-Term, Limited Duration" healthcare policies.

As a reminder (via the Kaiser Family Foundation):

Short-term, limited duration (STLD) health insurance has long been offered to individuals through the non-group market and through associations. The product was designed for people who experience a temporary gap in health coverage.1 Unlike other products that are considered “limited benefit” or “excepted benefit” policies – such as cancer-only policies or hospital indemnity policies that pay a fixed dollar benefit per inpatient stay – short-term policies are generally considered to be “major medical” coverage; however, short-term policies are distinguished from other comprehensive major medical policies because they only provide coverage for a limited term, typically less than 365 days. Short-term policies are also characterized by other significant limitations, including the types of services covered, often with a dollar maximum.

HHS Sec. Xavier Becerra

via Amy Lotven of Inside Health Policy:

Becerra Pressed On Surprise Billing, Short-Term Plans, Medicare

Lawmakers from both parties pressed HHS Secretary Xavier Becerra over surprise billing implementation, Medicare policy and non-ACA-compliant plans, including the Trump-era short-term plans and Association Health Plans during a wide-ranging hearing on the department’s fiscal 2022 discretionary budget. The former congressman and California attorney general also assured GOP lawmakers that Medicare for All is not on the agenda.

...The House Progressive Caucus has called for the potential $456 billion in savings to be used to add benefits to Medicare, although the caucus also supports making permanent the ACA’s enhanced tax credits. The White House also made clear that it wants the ACA tax credits to remain.

via KOLO 8:

New law clearly separates short term limited medical plans from Health Link

RENO, Nev. (KOLO) - Broker Alex Sampson is busy these days helping local residents connect with a health insurance program through Nevada Health Link.

But just seven days ago, a new law went into effect here in Nevada which may make the process less confusing for consumers looking for health care insurance coverage on their own.

The law impacts short term limited health medical plans. These are plans which provide very limited coverage for one year only to customers and could be confused with policies on Health Link.

“They are being advertised as extremely affordable plans,” says Janel Davis, Health Link Communications Officer. “But again when they go to use those plans and they go to the hospital for example, what they are finding out; what they need health wise is not covered,” says Davis.

via the New Jersey Dept. of Banking & Insurance:

NJ Department of Banking and Insurance Cautions Residents Shopping for Health Insurance Against Health Plans that Do Not Provide Comprehensive Coverage

  • Warning Follows Action Against Aliera, Trinity for Using Deceptive Practices and Misleading Consumers

TRENTON — New Jersey Department of Banking and Insurance Commissioner Marlene Caride today urged residents shopping for health insurance this open enrollment period to be aware of health plans with limited coverage that – unlike the health plans available at Get Covered New Jersey, the state’s official health insurance Marketplace – do not cover basic services and pre-existing conditions.

 

Back in June 2016, the Obama Administration rightly clamped down on "Short-Term Plans", limiting them to, you know, a "short term"...no more than 3 months out of the year, while also making them non-renewable; that is, you couldn't get around the 3-month limit by simply renewing the policy every three months:

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