Short-term, limited duration insurance (SLTDI) plans threaten and undermine consumer protections for people with pre-existing conditions.

They can deny coverage or charge more based on age, gender or health status. They can exclude services like maternity or mental health; impose unlimited deductibles; reimpose annual or lifetime limits on insurance benefits; and not pay for treatment of a pre-existing condition. 

In March 2024, the Biden administration reversed rules issued during the first Trump administration that expanded these short-term, limited-duration insurance (STLDI)  “junk” plans. The decision now faces a legal battle.

Driving the News:

– The final rule issued in March 2024 limits STLDI plans to a 3-month initial term, renewable for one additional month.

– It also bans plan “stacking” to prevent circumvention of coverage limits.

– In a statement, ACAP CEO Meg Murray called the regulation a “win for consumers,” highlighting improved disclosures to prevent people from unknowingly enrolling in inadequate coverage.

What’s next:

– In August 2024, a lawsuit challenged this new rule, claiming it exceeds agency authority and restricts alternative coverage options.

– ACAP filed an amicus brief supporting HHS and remains committed to defending the consumer protections put in place by the previous administration.