Trump Administration works
to give relief to Americans facing high premiums, fewer
choices
Proposed rule to allow
short-term, limited-duration insurance for longer periods
providing increased choice at a lower cost
In direct response to President Trump’s
October 2017 Executive Order, the Departments of Health and
Human Services (HHS), Labor, and the Treasury (the
Departments) issued a proposed rule today that is intended
to increase competition, choice, and access to lower-cost
healthcare options for Americans. The rule proposes to
expand the availability of short-term, limited-duration
health insurance by allowing consumers to buy plans
providing coverage for any period of less than 12 months,
rather than the current maximum period of less than three
months. The proposed rule, if finalized, will provide
additional options to Americans who cannot afford to pay
the costs of soaring healthcare premiums or do not have
access to healthcare choices that meet their needs under
current law.
“Americans need more choices in health
insurance so they can find coverage that meets their
needs,” said Health and Human Services Secretary Alex Azar.
“The status quo is failing too many Americans who face
skyrocketing costs and fewer and fewer choices. The Trump
Administration is taking action so individuals and families
have access to quality, affordable healthcare that works
for them.”
Short-term, limited-duration insurance, which
is not required to comply with federal requirements for individual
health insurance coverage, is designed to provide temporary
coverage for individuals transitioning between healthcare
policies, such as an individual in between jobs, or a
student taking a semester off from school. Access to these
plans has become increasingly important as premiums have
more than doubled - PDF
between 2013 and 2017 in health plans on the Federal Health
Insurance Exchange. And half of the counties in America
have only one insurance carrier to choose from.
“Americans who find themselves between jobs or
simply can’t afford coverage because prices are too high
will be helped by President Trump’s Healthcare for All
Executive Order,” said Centers for Medicare & Medicaid
Services (CMS) Administrator Seema Verma. “In a market that
is experiencing double-digit rate increases, allowing
short-term, limited-duration insurance to cover longer
periods gives Americans options and could be the difference
between someone getting coverage or going without coverage
at all.”
This announcement builds on the President’s
October 2017 Executive Order 13813, “Promoting Healthcare
Choice and Competition Across the United States,” which
directs the Departments to consider proposing regulations
or revising guidance to expand the availability of
short-term, limited-duration insurance and allow it to
cover longer periods. The Departments published a final
rule in 2016, which restricted short-term, limited-duration
insurance to less than three months. Key stakeholders,
including state regulators, have expressed concerns that
the current limit could cause harm to some consumers, limit
consumer options, and have little positive impact on the
risk pools in the long run. Today’s proposed rule would
address these concerns by reverting to the previous
definition of short-term, limited-duration insurance which
permits coverage for nearly a full 12 months.
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