Short-term plans, intended to be used as a stop-gap forindividuals who have lost health insurance, were originally cappedat 90 days. (Photo: Shutterstock)
While the Trump administration has been busy chipping away atthe provisions of the Affordable Care Act, it's also been expandingsome alternative, lower-cost options, including short-term healthinsurance plans. And as the administration faces legal challenges to its attacks on the ACA,last week it earned a win against a legal challenge to its 2018decision to expand short-term health plan term limits.
|On Friday, in a 2 to 1 decision, a court of appeals rejected an argument that the Trumpadministration acted beyond its scope and in conflict with theintent of the law. Judges Thomas Griffith and GregoryKatsas, who upheld the rule, wrote: "To be sure, Congresshoped that most individuals would purchase ACA-compliant plans astheir primary insurance, and it provided incentives to encouragethem to do so. But it did not foreclose other options."
|Related: Contracting COVID on a short-term health plan? Goodluck.
|Short-term plans, intended to be used as a stop-gap for individuals who havelost health insurance, were originally capped at 90 days. They werealso exempt from many of the provisions required of health plans under theACA, which meant that for many individuals they were moreaffordable–though they also provided less coverage. In 2018, theTrump administration extended the 90-day limit to 364, amove that drew criticism from some in the health care industry andprompted a lawsuit from the Association for CommunityAffiliated Plans.
|The ACAP argued that the administration had essentially createda "shadow" market of non-ACA compliant plans, which woulddestabilize the ACA markets. "So long as junk insuranceplans are permitted to compete directly with comprehensive,Affordable Care Act-compliant insurance plans, the healthcareprotections of the ACA—and the consumers who rely on them— are injeopardy," ACAP said in a statement.
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Emily Payne
Emily Payne is director, content analytics for ALM's Business & Finance Markets and former managing editor for BenefitsPRO. A Wisconsin native, she has spent the past decade writing and editing for various athletic and fitness publications. She holds an English degree and Business certificate from the University of Wisconsin.
