NJ warns about short-term health plans

The state’s Department of Banking and Insurance has banned the sale of short-term, limited duration health insurance and has made a plea to the federal government to ban it on a nationwide basis.The state’sDepartment of Banking and Insurancehas notified theCenters for Medicare and Medicaid Servicesthat offering short-term, limited duration health insurance plans is prohibited in New Jersey and made a plea to the federal government to have them discontinued on a nationwide basis.

Acting Commissioner Marlene Caride warned that permitting the sale of these plans nationally would cause harm to the nation’s health insurance market and to consumers. Short-term health plans are limited liability plans that are sold often on a month-to-month basis that charge a premium but generally do not provide the full coverage of commercial health plans sold in the individual market.

The Department also sent a letter to the CMS about federal regulations that would permit the sale of “skimpy health plans” that do not comply with the strong protections provided by theAffordable Care Act. The rule proposal is the result of anExecutive Order signed by President Trumpthat seeks to roll back important consumer protections implemented under the ACA.

“Although it may appear that allowing short-term, limited duration plans will provide additional choices to consumers, the sale of short term plans would only allow for significantly inferior coverage. New Jersey’s Legislature made an express determination that New Jersey citizens should be provided with comprehensive coverage in the individual insurance market, and this decision to protect our consumers cannot be preempted by federal rule,” Caride wrote. Copyright 2018 BridgeTower Media. All Rights Reserved.

CREDIT: Vince Calio