National Association of Insurance and Financial Advisors

Senate Rejects Roll-Back of State STLD Health Plan Rules

On October 30, the Senate rejected Democrats’ effort to roll back the Administration’s 1332 waiver rule that allows states to permit expanded short-term limited duration (STLD) health insurance. The vote came under the auspices of the Congressional Review Act (CRA), a process that allows Congress to undo a regulation, within specified time constraints, that it does not like. A CRA vote requires only a simple majority to succeed.
The Senate voted 43 to 52 against the CRA motion brought by Sen. Mark Warner (D-VA), with the support of all the Senate’s Democrats.  The Administration’s 1332 waiver rule allows states to authorize health insurance plans that are not compliant with the specific rules of the Affordable Care Act (ACA). Of concern to Sen. Warner and his colleagues was the waiver rule’s scope that allows states to authorize the sale of what they call “junk health insurance” plans that do not comply with the ACA’s ban on the use of preexisting conditions and minimum essential benefits rules. Sen. Warner focused his effort to roll back the 1332 waiver rule on the STLD health insurance that states could allow under a 1332 waiver.
So far, only one state—Georgia—has filed under the 1332 waiver rule.
Prospects: This effort to kill the ability of states to expand the use of STLD health insurance met with failure, but more efforts to limit this type of insurance can be expected. However, while the GOP is in control of the Senate, prospects for undoing the rule are minimal.
NAIFA Staff Contacts: Diane Boyle, Senior Vice President – Government Relations at; or Steve Kline, Director – Government Relations at  
  • Posted November 15, 2019 IN