Administration officials said that the plans will contain notices urging consumers to read their policies carefully so they are aware of any exclusions or limitations regarding coverage of pre-existing conditions or health benefits, such as hospitalization, preventative care or prescription drugs.
President Donald Trump's plan to reshape Obamacare without repealing the law continued Wednesday, as his administration rolled out its final plan to expand the use of skinny, short-term health insurance coverage.
Then candidate Trump throughout his campaign touted how Obamacare would be repealed and replaced with a much better health plan plus it would be cheaper.
The Trump administration on Wednesday issued final rules that would allow states like CT to allow the sale of cheaper, skimpier health care plans that were originally intended for short-term use but would now be available for 364 days, or almost 12 months, at a time. Also, insurers are not held to the ACA requirement that they spend at least 80 percent of premium revenue on plan members' medical care.
"We make no representation that it's equivalent coverage", said Jim Parker, a senior adviser at HHS.
Still, for customers who don't qualify for insurance subsidies and have seen their plans rocket up in price, the short-term options can be a risk worth taking. Even if that were true, allowing these policies to last for up to three years at a time creates an alternate market to the ACA in which insurers will market heavily to young and healthy enrollees, dupe them into buying bare-bones coverage with lower premiums, and ultimately make premiums for full-benefits, comprehensive coverage more expensive for the older and sicker enrollees who remain in ACA-compliant market.
The administration estimates that premiums for a short-term plan could be about one-third the cost of comprehensive coverage.
Connecticut-based insurers had lobbied the Trump administration, mostly unsuccessfully, to adopt certain consumer protections as it crafted the final regulations for short-term plans this year.
She said consumers could be harmed by slimmed-down policies that don't provide comprehensive coverage. A short-term plan ran about $124 a month on average in the last quarter of 2016, while an unsubsidized ObamaCare plan averaged $393. All have warned that consumers with bare-bones plans would be stranded when they need care - and that the defection of low-priced customers from ACA marketplaces would drive up prices for those who remain.
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Have you ever had a short-term insurance policy?
With the three-month restriction on short-term plans, people's deductibles were reset every three months.
In support of its claims that Trump has sabotaged the law, the complaint cites statements by the president like "we are getting rid of Obamacare" and "essentially, we have gotten rid of it". Because it is law, the President of the United States, being that he is expected to "take care that the laws be faithfully executed", must not take actions which circumvent, curtail or break this law.
The plans do not have to meet Obamacare's baseline coverage minimums, so things like prescription drugs or maternity care may not be covered under these plans.
"By actively and avowedly wielding executive authority to sabotage the ACA, defendants are not acting in good faith; instead, they have usurped Congress's lawmaking function, and they are violating the Constitution", the complaint said.
"It is not a silver bullet, but the rates are less", says Nolan, a Louisiana insurance broker.
Insurers must prominently display in the application and contract that the plan lacks many ACA protections. "They are not going to cover anything related to a pre-existing condition". But an analysis by the Congressional Budget Office estimated that number could grow to as much as 1.6 million in the next four years under the new rule.
Both supporters and critics of short-term plans say consumers who do develop health problems while enrolled could, in theory, hang on until the next open-enrollment period and buy an ACA plan during the sign-up period because the ACA bars insurers from rejecting people with preexisting conditions.
About 20 million are covered under the Obama law, combining its Medicaid expansion and subsidized private insurance for those who qualify.