NAIFA Opposes Proposal to Restrict Short-Term Health Care Plans

NAIFA has submitted a comment letter to the IRS raising concerns about the agency’s proposed regulation to limit “short-term” health insurance contracts to three months. NAIFA believes the three-month limit is too restrictive and could leave vulnerable consumers without health insurance coverage for significant periods of time while they wait for open enrollment periods.
 
Short-term coverage is often critical for individuals facing transitional periods in their lives. For example, young adults reaching age 26 who are no longer eligible under their parents’ plans can use short-term policies to bridge the gap until they obtain longer-term coverage. Others who may benefit from short-term policies include people who are between jobs, waiting for benefits to begin at a new job, waiting for coverage to begin under an ACA plan, or nearing Medicare eligibility.
 
Maryland recently enacted a state law that would allow consumers to purchase short-term health insurance for up to 11 months. NAIFA said in its comment letter that “such an approach would help ensure that consumers do not suffer a gap in their insurance coverage.”
 
  • Posted August 12, 2016 IN


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