‘These Plans Aren’t For Everyone’: Administration Defends Short-Term Coverage As Critics Call It Junk Insurance
The administration issued its final rule on the short-term plans on Wednesday, allowing insurers to sell them for 12 months and then renew them for two years. The coverage is cheaper because it doesn't meet the strict requirements instituted by the health law -- such as covering essential benefits. Democrats and other critics aired their concerns about the move putting both consumers and the marketplace at risk.
The New York Times:
‘Short Term’ Health Insurance? Up To 3 Years Under New Trump Policy
The Trump administration issued a final rule on Wednesday that clears the way for the sale of many more health insurance policies that do not comply with the Affordable Care Act and do not have to cover prescription drugs, maternity care or people with pre-existing medical conditions. President Trump has said that he believes that the new “short-term, limited-duration insurance” could help millions of people who do not want or need comprehensive health insurance providing the full range of benefits required by the health law. (Pear, 8/1)
The Washington Post:
Trump Administration Widens Availability Of Skimpy, Short-Term Health Plans
The short-term plans “may not be the right choice for everybody,” Azar said at an afternoon news briefing. But, he said, “we believe strongly in giving people options here.” Azar and other federal health officials predicted short-term, limited-duration plans will appeal mainly to middle-class people who do not qualify for government subsidies for ACA health plans — especially people who are young or healthy. With the law still in place despite Trump’s and congressional Republicans’ hostility toward it, “we are looking to do everything we can to take incremental steps that will make insurance coverage more affordable,” said Jim Parker, director of HHS’s Office of Health Reform. (Goldstein, 8/1)
The Associated Press:
Consumers Getting More Options For Short-Term Health Plans
Democrats immediately branded Trump’s approach as “junk insurance,” and a major insurer group warned that consumers could potentially be harmed. Other insurers were more neutral, and companies marketing the plans hailed the development. It’s unclear how much mass-market appeal such limited plans will ultimately have. State insurance regulators also have jurisdiction, and many states may move to impose their own restrictions. Federal officials said they anticipate a slow take-up, not sweeping changes. (Alonso-Zaldivar, 8/1)
The New York Times:
What To Know Before You Buy Short-Term Health Insurance
The Trump administration has just completed rules that will allow people to shop for a new kind of health insurance. So-called short-term plans will be offered for relatively long periods — just under a year at a time, with renewals for up to 36 months — and they will be marketed extensively in most states. They will tend to have substantially lower prices than the insurance people can buy in Obamacare markets, and for some people they may look like a better option. But the plans are cheaper for a reason: They tend to cover fewer medical services than comprehensive insurance, and they will charge higher prices to people with pre-existing health problems, if they’ll cover them at all. (Sanger-Katz, 8/1)
NPR:
Trump Administration Allows Scaled-Down Health Insurance Plans
The Congressional Budget Office, the nonpartisan research office that estimates the budget effects of policy proposals, gave a larger figure, estimating that about 2 million mostly healthy people will buy short-term plans. This could have the effect of driving premiums slightly higher on the ACA exchanges, because healthier people will leave the market, according to the CBO. (Kodjak, 8/1)
California Healthline:
Expansion Of Short-Term Health Plans A Non-Starter In California
The planned expansion of short-term health plans under a new Trump administration rule unveiled this week is on a crash course with a brick wall in California. The Golden State’s Democrat-dominated legislature is close to banning such plans, which offer consumers lower premiums in exchange for skimpier benefits that do not meet the Affordable Care Act’s coverage requirements for other policies sold in the individual marketplace. (Appleyby and Matthews, 8/1)
Politico:
Trump’s Losing Fight Against Obamacare
President Donald Trump can’t kill Obamacare, no matter how hard he tries. His administration’s latest threat to the law, unveiled Wednesday, expands the availability of short-term health plans that critics deride as “junk” insurance. However, despite the administration’s unrelenting efforts to sideline Obamacare, more insurers are signing up to sell 2019 coverage, and premium increases will be the lowest in years. (Demko and Cancryn, 8/1)