Today, the Department of Health and Human Services released the final “short-term plan” rule. These “short-term plans” can provide hollow coverage with hidden gaps for those who sign up. Expanding short-term plans will raise premiums and reduce plan choices for individuals and employers in the regular insurance market.
The proposal expands availability of a group of products that may implement discriminatory practices. This will likely draw healthier individuals off the Marketplace by offering them skinnier, medically-underwritten products, which will inflate prices and out-of-pocket costs on the Marketplace. The Arc believes that insurance coverage must ensure access to timely, affordable, high quality, and comprehensive health care that meets the needs of individuals with disabilities and chronic conditions.
Expanding access to short-term plans will move us even further away from achieving these goals. Short-term plans are not subject to consumer protections that have tremendous value for individuals with disabilities and chronic conditions, such as mandated essential health benefits, protections for people with pre-existing conditions, prohibitions on use of lifetime or annual caps, and other non-discrimination provisions. For these reasons, The Arc, in partnership with a coalition of other disability rights organizations known as the Consortium for Citizens with Disabilities, released comments earlier this year opposing this rule.
“The Affordable Care Act ended the practice of discriminatory health insurance practices; this rule allows insurance companies to once again set higher premiums based on health conditions. This limits access to comprehensive coverage and that will have a dire impact on people with significant health issues, like individuals with chronic illness and disabilities.
“Make no mistake, today’s final rule undermines current law and puts Americans with pre-existing conditions at risk. We remain steadfast in our commitment to protect the Affordable Care Act and the benefits it provides for people with disabilities,” said Julie Ward, Deputy Executive Officer for Public Policy, The Arc.
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