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AHIP Responds To Administration’s Proposed Rule On Short-Term Health Plans

posted by Kristine Grow

on April 23, 2018

WASHINGTON, D.C. – April 23, 2018 – America’s Health Insurance Plans (AHIP) has submitted comments on the Administration’s proposed rule, which would amend the definitions of short-term health plans and the federal standards that apply to their sale.  Matt Eyles, incoming president and CEO of AHIP, issued the following statement:

“We are united in our commitment to provide consumers with coverage choices that effectively help them improve their health and financial security. Every American should have access to affordable coverage, regardless of their income, health status, or pre-existing conditions.

“We recognize that Americans who buy their own coverage need more affordable options, particularly if they do not qualify for federal subsidies. We also believe that states should have primary responsibility for managing their individual markets.

“At the same time, we are concerned that this proposed rule will lead to more people being uninsured and under-insured, and to higher costs in the long run. Short-term plans can provide an important temporary bridge for Americans who are transitioning between plans. But they are not a replacement for comprehensive coverage. Consumers should understand that short-term plans:

  • may not be available to individuals with pre-existing health conditions or may not cover any treatment for pre-existing conditions.
  • may not cover preventive care, prescription drugs, mental health care or treatments for chronic health conditions (e.g., diabetes or heart disease).
  • may impose annual, lifetime or daily limits on coverage.
  • may leave a consumer without any coverage until the next open enrollment period when the short-term plan ends.

“We urge the Administration to limit the duration of short-term plans to six months, ensure clear disclosures to consumers about what short term plans do and do not cover, and inform consumers of the potential availability of discounted coverage through the marketplace.”

About AHIP

America’s Health Insurance Plans (AHIP) is the national trade association representing the health insurance community. AHIP’s members provide health and supplemental benefits to millions of Americans through employer-provided coverage, the individual insurance market, and public programs such as Medicare and Medicaid. AHIP advocates for solutions that expand access to affordable health care coverage to all Americans through a competitive marketplace that fosters choice, quality, and innovation. Visit www.ahip.org for more information.