February 22, 2018
This week the big news was the release of a new proposed regulation on short term duration plans. The proposed rule can be found here: https://www.federalregister.gov/documents/2018/02/21/2018-03208/short-term-limited-duration-insurance.
Highlights of the rule include:
- Short term limited duration plans (STLDs) are non-ACA compliant forms of coverage (note STLDs are not individual health insurance coverage)
- Previously (starting in 2017), issuers were barred from offering coverage for more than three months. This regulation removes that limitation. Issuers will be allowed to offer coverage for these products indefinitely- which should increase the viability/attractiveness of this coverage.
- The regulation would go into effect 60 days from finalization (likely June) – so essentially late summer/early fall.
- HHS estimates that this change in regulation will increase enrollment in STLDs in the first year by 100k-200k and increase APTC outlays by $96 million to $168 million per year (i.e. HHS is admitting that risk pool will get worse).
- Currently, (2018) individuals who purchase these products will be subject to the mandate penalty so it’s possible enrollment will more dramatically increase in these plans next year when the mandate repeal kicks in.
Other News and Notes:
Work Requirements: More states appear to be following Kentucky’s lead of attaching work requirements to their Medicaid program. It has been reported that Florida, Alaska, and Missouri are all considering it.
Idaho: Nicholas Bagley, one of the foremost legal minds on the ACA, weighs in on Idaho and potential legal risk around non-ACA products.
State Regulators and Tax Changes: As part of the recently passed tax bill, a number of insurance companies saw their taxes decrease. Here is the latest on how state regulators are thinking about this, courtesy of Georgetown’s Health Policy Institute
Medicare for All? The influential left-leaning think tank, Center for American Progress, released its plan for universal coverage. Their plan would expand Medicare and a few additional benefits to all Americans. You can read about it here.
Research of the Week: Urban Institute compares competition in the marketplace to competition in Medicare Advantage. In short, why is Medicare Advantage working better these days? You can read it here.