Short-term, limited duration insurance (SLTDI) plans threaten and undermine consumer protections for people with pre-existing conditions.
They can deny coverage or charge more based on age, gender or health status. They can exclude services like maternity or mental health; impose unlimited deductibles; reimpose annual or lifetime limits on insurance benefits; and not pay for treatment of a pre-existing condition.
In March 2024, the Biden administration reversed rules issued during the first Trump administration that expanded these short-term, limited-duration insurance (STLDI) “junk” plans. The decision now faces a legal battle.
Driving the News:
– The final rule issued in March 2024 limits STLDI plans to a 3-month initial term, renewable for one additional month.
– It also bans plan “stacking” to prevent circumvention of coverage limits.
– In a statement, ACAP CEO Meg Murray called the regulation a “win for consumers,” highlighting improved disclosures to prevent people from unknowingly enrolling in inadequate coverage.
What’s next:
– In August 2024, a lawsuit challenged this new rule, claiming it exceeds agency authority and restricts alternative coverage options.
– ACAP filed an amicus brief supporting HHS and remains committed to defending the consumer protections put in place by the previous administration.