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You are here: Home / News / Administration Releases Final Rule on Short-Term Limited Duration Plans

Administration Releases Final Rule on Short-Term Limited Duration Plans

August 3, 2018 by NDNRC

This week, the Trump administration released its final rule on redefining what qualifies as a short-term, limited duration health plan. In summary, the new rule extends the length for which these plans can be purchased and allows them to last under 12 months and it allows them to be renewed for up to three years. The final rule, CMS press release and CMS fact sheet can be found here:

  • Final Rule
  • Press Release
  • Fact Sheet

AAHD has significant concerns about these rule changes and what it means for the ACA marketplace and its sustainability. Plans that are sold as short-term, limited duration health plans are not subject to the same consumer protections in the ACA, such as prohibitions against denying coverage due to pre-existing conditions or charging individuals more due to their health conditions. They will also not be required to cover the same essential health benefits required under an ACA compliant plan. Therefore, these short-term, limited duration plans will siphon off healthy consumers from the ACA marketplace thereby creating a de facto high-risk pool in the ACA market. AAHD has previously joined a letter from the Consortium for Citizens with Disabilities (CCD) expressing these concerns and others and with the issuance of the final rule, CCD has issued a new statement raising these concerns again.

Filed Under: News

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