“The affordable care act did not live up to its promise to America,” says Tyler McClosky, Chief Operating Officer for First Family Insurance. “But now, for the first time in years, American’s will finally have the choice and options for better individual Health Insurance coverage. This is a huge win for Americans and our industry!”
Trump Administration Delivers on Promise of More Affordable Health Insurance Options. HHS final rule on short-term, limited-duration insurance brings more flexibility and choices to consumers. On Wednesday, the departments of Health and Human Services, Labor and the Treasury issued a final rule to help Americans struggling to afford health coverage find new, more affordable options. The rule allows for the sale and renewal of short-term, limited-duration plans that cover longer periods than the previous maximum period of less than three months. This action will help increase choices for Americans faced with escalating premiums and dwindling options in the individual insurance market.
Before President Obama left office, he and his administration took a hard stance on all plans that were not part of ‘Obamacare’ For millions of American’s who relied on Short-Term Major Medical plans that lasted for an entire year, his order made these plan only available for a maximum of 90 days. This left millions of more Americans uninsured and sent other plans premiums much higher.
Short-term, limited-duration insurance, which is not required to comply with federal market requirements governing individual health insurance coverage, can provide coverage for people transitioning between different coverage options, such as an individual who is between jobs, or a student taking time off from school, as well as for middle-class families without access to subsidized ACA plans. Access to these plans has become increasingly important as premiums have escalated for individual market plans, and affordable choices for individuals and families have dwindled.
The average monthly premium for an individual in the fourth quarter of 2016 for a short-term, limited-duration policy was approximately $124, compared with $393 for an unsubsidized individual market plan. – source HHS