Short-term health plans are typically used by individuals transitioning from one type of insurance to another to avoid gaps in their healthcare coverage. Under previous rules adopted by the Obama Administration, such plans were limited to a three-month period. Now all of that has changed. Earlier this month, the Department of Health and Human Services, Department of Labor, and Treasury issued a rule that will allow consumers to buy short-term health plans that can now last up to a year, and extensions and renewals can last up to three years depending on individual state rules.
While the price of these plans may seem very appealing to consumers, there are several points consumers should keep in mind before switching to a short-term plan. These plans are exempt from the consumer protections required of qualified health plans, including those related to pre-existing conditions and essential health benefits. Moreover, policy experts believe these plans will undermine the individual insurance market by attracting younger, healthier people away from the current risk pool and driving up the costs for those that remain. It is estimated that about 600,000 Americans will newly enroll in a short-term health plan under the new rule. Below are a few articles that summarize the things you need to know before buying short-term health insurance.
We know there are many views on this controversial matter and hope you will share your thoughts after reading some of the stories linked below. Generating conversations about the important health issues affecting the people of our state is another way we are working toward our long-term goal of one day making Arizona the Healthiest State in the Nation!