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FOR IMMEDIATE RELEASE: July 7, 2023

FOR MORE INFORMATION: Jeff Van Ness, (202) 204-7515, jvanness@communityplans.net

ACAP STATEMENT ON PROPOSED RULE ON SHORT-TERM, LIMITED-DURATION INSURANCE

WASHINGTON—Margaret A. Murray, Chief Executive Officer of the Association for Community Affiliated Plans (ACAP), issued the following statement on the regulation governing short-term, limited duration insurance plans, which the Biden Administration issued earlier today:

“This regulation sends an unequivocal message: junk insurance is no substitute for the real thing.”

“Short-term, limited duration insurance and other non-ACA-compliant plans offer a false sense of security that threatens consumers’ physical and financial health. They trick customers with low premiums, only to force them to swallow skimpy or even non-existent coverage. The result is people pay a lot more money—and in return, often receive far less coverage than they are led to believe they’ve purchased. That’s why we sued to stop the expansion of these plans.”

“Everyone deserves affordable, high-quality health coverage. Short-term plans are neither: they routinely leave basic health services uncovered – and often stick their members with bills for high-cost procedures, ruining their family’s finances.

“Short-term plans were created to fill in brief gaps in coverage for workers as they moved between jobs. They were never designed to work as comprehensive coverage—as the last few years have proven. We’re glad to see that they are prohibited from masquerading as actual health insurance. This is a real step forward. We support this needed regulation and applaud the Administration’s leadership.” 

About ACAP:
ACAP represents 80 health plans, which collectively provide health coverage to more than 25 million people. 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 www.communityplans.net.

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