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Denying Coverage for Pre-Existing Conditions Allows Insurance Companies to Charge Lower Premiums

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A new issue brief from the Kaiser Family Foundation demonstrates how insurance companies are able to keep premiums significantly lower for short-term, limited duration health plans. One of the main ways that insurance companies keep premiums lower for these plans is by denying coverage to people with pre-existing conditions. The brief entitled “Why do Short-Term Health Insurance Plans Have Lower Premiums than Plans that Comply with the ACA?” shows that insurance companies are able to lower premiums 38% by excluding those individuals.