States React on Trump Regs for AHPs, Short-term Plans

From Health Plan Weekly

The Trump administration's recent release of final rules expanding short-term limited duration (STLD) health insurance policies and association health plans (AHPs) in the individual and small-group markets have raised concerns among some state regulators. They worry non-Affordable Care Act-compliant options could shift perhaps unsuspecting residents, especially younger, healthier ones, off ACA exchanges into less costly, bare-bones coverage. Others are confident that sufficient consumer protections exist to guard against predatory practices and misleading marketing.

Georgia says it welcomes the expansion of insurance options. "In our view, the former rule limitations were not supported by a legitimate basis in federal law," says Glenn Allen, communications director for the Georgia Department of Insurance. "The former rules placed unreasonable restrictions on these policies and prevented the industry from meeting the needs of Georgia consumers seeking this type of coverage."

Nevada says its state insurance regulators and ACA exchange are working out concerns. According to Heather Korbulic, executive director of the Nevada Health Link exchange, the exchange "has developed a consumer education campaign focused on demonstrating the differences between a QHP [i.e., qualified health plan] on the Exchange and the skimpy benefits offered by an STLD."

Maryland considers itself on solid footing because of its proactive state legislature. Bob Morrow, the Maryland Insurance Administration's associate commissioner for life and health, notes the General Assembly passed S.B. 387, which defines short-term plans as being of less than three months' duration, and says such policies cannot be renewed or extended.

"So, the Maryland market in most ways is largely unchanged," Morrow says. He notes there is the possibility of change "if a whole bunch of people" get a certificate of authority to offer self-funded multiple employer welfare arrangements or insurers rise up in force to offer fully insured MEWAs. But carriers haven't said they are contemplating this.