ACAP Comments on Open Enrollment, ACAP v. Treasury

FOR MORE INFORMATION: Jeff Van Ness, (202) 204-7515

WASHINGTON—Margaret A. Murray, Chief Executive Officer of the Association for Community Affiliated Plans (ACAP), made the following statement regarding enrollment in qualified health plans (QHP) offered on Health Insurance Marketplaces and developments in ACAP v. Treasury, a lawsuit challenging the validity of regulations governing short-term, limited duration insurance (STLDI) in which plaintiffs and the Government recently filed motions for summary judgement, and responses thereto:

“The results from open enrollment are clear: short-term limited-duration plans have taken a bite out of Marketplace plans. Everywhere ACAP plans offered comprehensive Marketplace insurance in states that permit STLDIs under the new regulation, their enrollment went down. Enrollment went up for ACAP plans in every state that bars STLDIs.

“There’s good reason for this – STLDIs are insurance in name only; they can discriminate based on age, gender, or health status; can include or exclude conditions at will; refuse to pay for pregnancy or mental health services; and can engage in rescission – that is, refuse to pay for medical costs on the basis of a technicality.

“STLDIs also only pay out roughly half of every premium dollar in medical costs; in contrast, QHPs are obligated by law to spend 80 cents of every dollar they take in on care. It’s little wonder STLDIs have such lower premiums.

“These STLDIs are worthwhile only as a short-term stopgap, as their name implies. Their value as an “alternative” to health plans that offer comprehensive coverage and play by the rules is illusory for people who need health care. Many who will rely on STLDIs for coverage will have an unwelcome surprise bill.

“We’ve established that STLDIs can do real harm to the bottom lines of health plans that play by the rules. That’s one thing. Once they start doing real harm to working families that play by the rules, though – and they will – that’s something else altogether. That’s why we filed suit, along with six allied organizations, to stop the harm caused by the STLDI regulation.”

For more information about the suit, visit

About ACAP:
ACAP represents 64 health plans which collectively provide health coverage to more than 20 million people in 29 states. Safety Net Health Plans serve their members through Medicaid, Medicare, the Children’s Health Insurance Program (CHIP), the Marketplace and other publicly-sponsored health programs. For more information, visit


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