Source: “Shortchanged: How the Trump Administration’s Expansion of Junk Short-Term Health Insurance Plans is Putting Americans at Risk,” U.S. House of Representatives, Committee on Energy and Commerce, Democratic staff report, June 2020.Short-term limited duration insurance plans spend less than half of consumers’ premiums on medical care, while insurance plans that comply with the rules of the Affordable Care Act spend 80 percent to 85 percent of premium income on medical care, according to a recent congressional staff report.
Short-term, limited-duration insurance plans threaten the health and financial well-being of American families, according to a recent staff report from Congressional Democrats on the Committee on Energy and Commerce (E&C). The report is a result of an investigation that staff conducted into nine health insurers, including UnitedHealth Group and Anthem, and five insurance company brokers that sell these plans for insurers.
“These plans are simply a bad deal for consumers, and oftentimes leave patients who purchase them saddled with thousands of dollars in medical debt,” according to “Shortchanged: How the Trump Administration’s Expansion of Junk Short-Term Health Insurance Plans is Putting Americans at Risk.” The committee’s investigation into how these plans operate outlines what the report calls “the deeply concerning industry practices” of STLDI plans and the insurance brokers who sell them. Continue reading
Milliman actuaries compared costs under health insurance plans that comply with the requirements of the Affordable Care Act versus costs of short-term health plans that do not meet the ACA’s requirements.
New research about short-term, limited-duration health plans shows that none of the plans studied covered pre-existing conditions and all had coverage limits, according to a new report from Milliman, an actuarial consulting firm. Only one-third of the plans covered prescription drugs and only 42% covered mental health, according to the report.
In my most recent post, I recapped what Georgetown University’s Sabrina Corlette, who is also a former Senate health policy aide, told us on an AHCJ webcast about association health plans. This post looks at the second part of the webinar, about short term limited duration plans. Both are options expanded by the Trump administration that may undermine the ACA markets. You can see her slides and listen to the webcast here.
It is worth nothing that health insurance remains very expensive for people who are trying to buy coverage on the individual market who do not quality for income-related subsidies in the ACA exchanges. Continue reading