Proposed rule sparks controversy over short-term health insurance

The proposed rule to restrict short-term health insurance plans has sparked controversy among healthcare experts who warn of the far-reaching consequences. One prominent healthcare authority, Michael F. Cannon, has voiced concerns about the potential impact of this regulation on short-term limited duration health insurance (STLDI) plans. Under this rule, STLDI plans would be limited to a four-month duration and renewals within a 12-month period for the same individual would be prohibited, potentially leaving those with illnesses without coverage.

Cannon argues that STLDI plans are essential for many individuals as they provide temporary and primary health insurance solutions. These plans are particularly valuable for those who find Affordable Care Act (ACA) premiums unaffordable, receive limited premium assistance, or object to certain ACA-required coverages. STLDI plans offer flexibility, allowing consumers to select customized coverage at a lower cost than ACA plans.

Furthermore, Cannon contends that STLDI plans can benefit ACA enrollees by offering an affordable alternative if they develop medical conditions. This, in turn, could stabilize ACA risk pools and mitigate rising premiums for ACA-compliant plans. Cannon also challenges the categorization of STLDI plans as "not comprehensive coverage," arguing that non-partisan authorities indicate that most of these plans offer comprehensive coverage, sometimes exceeding ACA plans in certain aspects, such as provider networks and premiums.

The proposal to cancel STLDI plans after four months has ignited controversy, as Cannon maintains that this goes against Congress' goals of reducing gaps in health insurance, minimizing the number of uninsured individuals, and protecting the sick from medical underwriting. Prematurely canceling STLDI plans could leave hundreds of thousands without coverage. The debate surrounding this proposed rule highlights the ongoing struggles to find a balance between affordability, coverage options, and the needs of individuals in the healthcare system.

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Michael F. Cannon, a prominent healthcare authority, has voiced concerns about a proposed regulation impacting short-term limited duration health insurance (STLDI) plans. This rule would limit STLDI plans to a four-month duration and prohibit renewals within a 12-month period for the same individual, potentially leaving those with illnesses without coverage.

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Cannon argues that STLDI plans are essential for many individuals as they provide temporary and primary health insurance solutions. These plans are particularly valuable for those who find Affordable Care Act (ACA) premiums unaffordable, receive limited premium assistance, or object to certain ACA-required coverages. STLDI plans offer flexibility, allowing consumers to select customized coverage at a lower cost than ACA plans.

read more here

Cannon also contends that STLDI plans can benefit ACA enrollees by offering an affordable alternative if they develop medical conditions. This, in turn, could stabilize ACA risk pools and mitigate rising premiums for ACA-compliant plans.

read more here

Cannon's comments also challenge the categorization of STLDI plans as "not comprehensive coverage." He argues that non-partisan authorities indicate that most of these plans offer comprehensive coverage, sometimes exceeding ACA plans in certain aspects, such as provider networks and premiums.

read more here

The proposal to cancel STLDI plans after four months has ignited controversy. Cannon maintains that this goes against Congress' goals of reducing gaps in health insurance, minimizing the number of uninsured individuals, and protecting the sick from medical underwriting. Prematurely canceling STLDI plans could leave hundreds of thousands without coverage.

read more here