Industry, Advocacy Groups Sue Administration Over Short-Term Plans They Say Will Lead To Unfair Competition
The plans will have much lower premiums than health law-compliant ones because they can turn away customers due to preexisting conditions or charge more based on age, health status and gender, with no out-of-pocket caps, among other things.
Healthcare Groups Sue To Block Trump's Expansion Of Short-Term Plans
Seven healthcare industry and advocacy groups sued the Trump administration Friday to block a new rule expanding the availability of short-term health plans that don't comply with Affordable Care Act consumer protection rules for the individual market. The Association for Community Affiliated Plans, the American Psychiatric Association and several other groups alleged that the rule flies in the face of the intent of the ACA to make low-cost comprehensive insurance available to Americans and it cannot move forward. (Meyer, 9/14)
The Wall Street Journal:
Lawsuit Seeks To Block Trump Health-Insurance Effort
The suit, filed in U.S. District Court for the District of Columbia, takes aim at one of the central planks of the administration’s plan to roll back the Obama-era health law, after Congress failed to repeal it last year. It sets the stage for a legal standoff that could affect coverage and premiums for millions of Americans in 2019. The Trump administration rule finalized in August loosens restrictions on a type of coverage known as short-term medical insurance—low-cost plans that cover a limited period with less-expansive benefit offerings, which are subject to fewer consumer protection regulations. The plans don’t have to cover people with pre-existing conditions, and insurers can charge higher premiums based on a consumer’s health status. (Armour, 9/14)