ACAP Statement on Final Rule Governing Short-Term, Limited-Duration Insurance

WASHINGTON, March 29 -- The Association for Community Affiliated Plans issued the following statement on March 28, 2024:

* * *

Margaret A. Murray, Chief Executive Officer of the Association for Community Affiliated Plans (ACAP), issued the following statement on the new regulation governing short-term, limited-duration insurance plans released by the Biden Administration.

"We applaud the Biden Administration for closing the door on the efforts of junk insurance plans to pretend to serve as comprehensive health coverage.

"Short-term, limited-duration insurance and other non-ACA-compliant plans may offer consumers low premiums, but that comes with a false sense of security and skimpy or even non-existent coverage. When consumers get sick or injured, they are often left without the coverage they need - and a stack of unpaid medical bills.

"That's why we led the lawsuit to stop the last administration's expansion of these plans.

"This new regulation that returns short-term, limited-duration insurance plans to their original purpose as stopgap coverage is a win for consumers. Improved consumer disclosures will also better inform people about the limitations of these policies and help protect consumers from selecting products that don't cover the health care services they expect and may well need.

"We're also pleased to see that this rule will prohibit short-term, limited-duration insurance plans from providing multiple short-term policies to the same policyholder within a 12-month period.

"Again, we applaud the Administration for putting this rule in place ahead of this year's ACA open enrollment season."

* * *

About ACAP:

ACAP represents 79 health plans, which collectively provide health coverage to more than 25 million people. Safety Net Health Plans serve their members through Medicaid, Medicare, the Children's Health Insurance Program (CHIP), the Marketplace and other publicly sponsored health programs.

* * *

Original text here: https://www.communityplans.net/2024/03/28/acap-statement-on-final-rule-governing-short-term-limited-duration-insurance/