eHealth CEO Scott Flanders Applauds the Trump Administration’s Proposed Rule to Expand the Duration of Short-Term Health Insurance
“This proposed rule is designed to give consumers who are struggling with costs important choices in the health care market. Short-term plans provide consumers who might otherwise go uninsured with a valuable measure of protection at an affordable price,” Flanders said.
The administration’s proposed rule, which would allow the duration of short-term plans to extend up to less than 12 months, would replace an Obama-era regulation that restricted their duration to a maximum of 90 days. The old rule was intended to improve the quality of the risk pool among consumers shopping for ACA plans and help keep the price of major medical health insurance low.
“While the authors of the Affordable Care Act were well intentioned, the balanced risk pools they envisioned never came into being. Too many people were simply priced out of the market. This proposed rule reflects an understanding of that reality, and creates an alternative for consumers who can’t afford an ACA-compliant plan,” Flanders said.
“These plans serve an important function for consumers transitioning between jobs and employer-based health insurance. Extending the duration of short-term plans would offer relief, security and peace of mind for many consumers, particularly those who aren’t able to access subsidies for Obamacare-compliant plans,” Flanders said.
An eHealth analysis of shopping trends among its customers across the country found short-term coverage could, on average, be purchased for about a quarter of the cost of Obamacare-compliant plans for individuals and families. For short-term coverage, the average monthly premium is
“Short-term plans don’t offer the same benefits as major medical plans. They are significantly less expensive for a reason, and we’re committed to explaining to consumers precisely what they are and are not buying as they shop for the most appropriate option for themselves and their family,” said
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