Starting April 1, payers
who decide to sell short-term limited duration (STLD) health benefit plans in
Colorado must offer products covering essential health benefits mandated by
state law. Short-term plans also won't be able to deny applicants based on their
health status: They must be guaranteed issue.
But one basic element
will remain unchanged: STLD plans being sold in Colorado, as elsewhere, won’t
cover pre-existing conditions.
Spokesperson Vincent
Plymell of the Colorado Division of Insurance tells AIS Health that the state's
action is "about enhancing consumer protections for people who truly need
a short-term plan."
Attorney Katie Keith, a
research professor at Georgetown University's Center on Health Insurance
Reforms, notes the fast turnaround time for the Trump administration's 2018
rule relaxing restrictions on STLD plans gave scant time for states to enact
laws and make regulatory changes to protect markets.
The idea behind
Colorado's regulatory action on short-term plans "is it cuts the incentive
for companies to come in and cannibalize the market," Keith says.
Keith adds,
"Covering the benefits is one thing, but if they [i.e., short-term plan
sponsors] can still exclude pre-existing conditions, that could still be a
problem" for consumers who might be tempted by STLD plans' low premium
rates without understanding the product's limitations.
From Health Plan Weekly
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