ADEA Washington Update

Short-term Health Insurance Regulation Changes Coverage

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The U.S. Department of Health and Human Services has issued a final rule that allows for the sale of short-term health insurance plans that span longer than the previous three-month maximum. Now, short-term plans can span an initial period of less than 12 months and can be extended for a maximum of 36 months. Short-term plans are not beholden to federal regulations for health payer coverage. Because these plans will not be held to federal regulations, they can exclude patients with pre-existing conditions or deny certain types of coverage, like dental care, that are protected in ACA-approved health plans. The availability and longer duration of slimmed-down policies that do not provide comprehensive coverage has the potential to harm consumers, both by making comprehensive coverage more expensive and by leaving some consumers unaware of the risks of these policies.

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