A‌ ‌different‌ ‌result‌ ‌

The‌ ‌Galen‌ ‌report‌ ‌argues‌ ‌that‌ ‌the‌ ‌data‌ ‌does‌ ‌not‌ ‌support‌ ‌those‌ ‌gloomy‌ ‌predictions.‌ ‌Specifically,‌ ‌it‌ ‌uses‌ ‌data‌ ‌from‌ ‌the‌ ‌last‌ ‌three‌ ‌years‌ ‌to‌ ‌counter‌ ‌criticism‌ ‌of‌ ‌short-term‌ ‌plans‌ ‌by‌ ‌showing‌ ‌results‌ ‌in‌ ‌states‌ ‌that‌ ‌allowed‌ ‌full‌ ‌expansion‌ ‌of‌ ‌short-term‌ ‌plans,‌ ‌versus‌ ‌states‌ ‌that‌ ‌restricted‌ ‌the‌ ‌expansion‌ ‌of‌ ‌the‌ ‌plans.‌ ‌ ‌ ‌ The‌ ‌study‌ ‌found‌ ‌the‌ ‌following:‌ ‌

States‌ ‌that‌ ‌allowed‌ ‌full‌ ‌expansion‌ ‌of‌ ‌short-term‌ ‌insurance‌ ‌saw‌ ‌lower‌ ‌percentages‌ ‌of‌ ‌people‌ ‌leaving‌ ‌individual‌ ‌health‌ ‌insurance‌ ‌plans,‌ ‌compared‌ ‌with‌ ‌states‌ ‌that‌ ‌restricted‌ ‌such‌ ‌plans,‌ ‌during‌ ‌the‌ ‌years‌ ‌2018-2021.‌ ‌ ‌
States‌ ‌that‌ ‌allowed‌ ‌full‌ ‌expansion‌ ‌saw‌ ‌much‌ ‌higher‌ ‌rates‌ ‌of‌ ‌insurers‌ ‌offering‌ ‌new‌ ‌plans;‌ ‌between‌ ‌2018‌ ‌and‌ ‌2021,‌ ‌there‌ ‌was‌ ‌a‌ ‌61%‌ ‌increase‌ ‌in‌ ‌new‌ ‌plans‌ ‌offered‌ ‌in‌ ‌those‌ ‌states.‌ ‌In‌ ‌states‌ ‌that‌ ‌restricted‌ ‌short-term‌ ‌plans,‌ ‌the‌ ‌increase‌ ‌was‌ ‌only‌ ‌25%.‌ ‌
Also‌ ‌during‌ ‌that‌ ‌time‌ ‌period,‌ ‌premiums‌ ‌in‌ ‌the‌ ‌individual‌ ‌market‌ ‌dropped‌ ‌more‌ ‌(-5.6%)‌ in‌ ‌states‌ ‌that‌ ‌fully‌ ‌expanded‌ ‌short-term‌ ‌insurance‌ ‌than‌ ‌states‌ ‌that‌ ‌restricted‌ ‌the‌ ‌plans‌ ‌(-2.7%),‌ ‌for‌ ‌the‌ ‌lowest-priced‌ ‌silver‌ ‌plans‌ ‌(silver‌ ‌plans‌ ‌are‌ ‌the‌ ‌most‌ ‌popular‌ ‌choice‌ ‌among‌ ‌ACA‌ ‌marketplace‌ ‌offerings).‌ ‌Premiums‌ ‌also‌ ‌dropped‌ ‌more‌ ‌for‌ ‌full-expansion‌ ‌states‌ ‌in‌ ‌other‌ ‌tiers‌ ‌of‌ ‌coverage,‌ ‌compared‌ ‌to‌ ‌states‌ ‌with‌ ‌restrictions‌ ‌on‌ ‌short-term‌ ‌plans.‌ ‌ ‌

Blase‌ ‌concludes‌ ‌that‌ ‌the‌ ‌fears‌ ‌that‌ ‌many‌ ‌had‌ ‌about‌ ‌expanding‌ ‌short-term‌ ‌insurance‌ ‌plans‌ ‌have‌ not‌ ‌been‌ ‌borne‌ ‌out‌ ‌by‌ ‌the‌ ‌experience‌ ‌of‌ ‌state‌ ‌markets‌ ‌over‌ ‌the‌ ‌past‌ ‌three‌ ‌years.‌ ‌ ‌ ‌ "The‌ ‌projected‌ ‌costs,‌ ‌not‌ ‌to‌ ‌mention‌ ‌the‌ ‌significant‌ ‌concerns‌ ‌raised‌ ‌by‌ ‌the‌ ‌critics,‌ ‌have‌ ‌not‌ come‌ ‌true,"‌ ‌he‌ ‌wrote.‌ ‌"States‌ ‌that‌ ‌fully‌ ‌permit‌ ‌short-term‌ ‌plans‌ ‌did‌ ‌not‌ ‌have‌ ‌reduced‌ ‌individual‌ ‌market‌ ‌enrollment,‌ ‌less‌ ‌choice‌ ‌of‌ ‌individual‌ ‌market‌ ‌coverage,‌ ‌or‌ ‌higher‌ ‌individual‌ ‌market‌ ‌premiums,‌ ‌as‌ ‌predicted‌ ‌by‌ ‌a‌ ‌number‌ ‌of‌ ‌analysts.‌ ‌On‌ ‌the‌ ‌contrary,‌ ‌actual‌ ‌experience‌ ‌shows‌ ‌that‌ ‌states‌ ‌that‌ ‌fully‌ ‌permit‌ ‌short-term‌ ‌plans‌ ‌have‌ ‌experienced‌ ‌improvements‌ ‌in‌ ‌their‌ ‌individual‌ ‌ markets‌ ‌compared‌ ‌to‌ ‌states‌ ‌that‌ ‌restrict‌ ‌short-term‌ ‌plans‌ ‌on‌ ‌every‌ ‌dimension—enrollment,‌ ‌choice‌ ‌of‌ ‌plans,‌ ‌and‌ ‌premiums."‌ ‌

Instant Insights /

Expansion of short-term plans has worked better than predicted: Study

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