- The preliminary final ruling vindicates Short Term Medical as a viable alternative to ACA ( Obamacare). The ruling cites lower cost and more access to providers via PPOs and changes the penalty for not having an ACA Plan to Zero Starting January 1, 2019.
- The New Ruling resets the duration of Short Term Medical Plans to 12 months (as it was for the last 20 years).
- In addition, they are considering processes for expedited or streamlined reapplication for short-term limited-duration insurance that would simplify the reapplication process and minimize the burden on consumers.
The result will be to make Short Term Medical Plans easy to reapply for after the initial 12 month period.
Other comments touting the benefits of Short Term Medical are:
- Individuals who purchase short-term, limited-duration insurance (as opposed to being uninsured would) potentially experience improved health outcomes and have greater protection from catastrophic health care expenses.
- Individuals purchasing short-term, limited-duration policies could obtain broader access to health care providers compared to those ACA-compliant plans that have narrow provider networks.
- Short-term, limited-duration insurance policies can be priced in an actuarially fair manner, subject to State law saving consumers over 70% off cost of ACA plan.
To see the actual proposal click here for PDF (make sure you download it).