Wednesday, July 31, 2019

Federal Judge Upholds Trump's Expansion of Short-Term Plans

A national trade group of 66 safety-net plans recently failed to persuade a federal judge, by its submission of some plan enrollment data, that the Trump administration's rule promoting the sale of short-term limited duration insurance (STLDI) resulted in their membership declines.
Yet the Association for Community Affiliated Plans (ACAP) says it is undaunted by Judge Richard Leon's ruling to uphold regulations allowing the sale of non-Affordable Care Act (ACA)-compliant short-term plans and confident of a successful appeal. The ACAP-led lawsuit was filed last September.
Leon, of the U.S. District Court for the District of Columbia concluded there was no "regulatory power grab" and no indication from evidence submitted by ACAP that the STLDI rule would result in a "substantial exodus" from individual-market exchanges that would "threaten the ACA's structural core." 
ACAP CEO Meg Murray responded to the ruling in a statement, saying her group remains firm in its contention the Trump administration’s decision "to expand dramatically the sale of junk insurance violates the Affordable Care Act and is arbitrary and capricious."
A Houston-based ACAP member plan tells AIS Health that short-term plans are indeed wreaking havoc.
"In Texas alone, premiums for individual coverage have risen 20% since the introduction of expanded duration STLDI," said Catherine Mitchell, executive vice president and chief operating officer for nonprofit insurer Community Health Choice. "Carriers aren't required to share enrollment figures for STLDI, but Urban Institute estimates more than 420,000 Texans currently have these plans….In a state where ACA plans cover approximately 1 million lives, STLDI is distorting the risk pool by cherry picking who and what they cover."
From Health Plan Weekly

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