CAHC Statement on Final Short-Term, Limited Duration Insurance Rule

WASHINGTON, DC (August 1, 2018): The Council for Affordable Health Coverage (CAHC)  – a coalition of employers, insurers, life science companies, PBMs, brokers, agents, patient groups, and physician organizations – responded today to the Trump administration's final rule governing the use of short-term, limited duration health plans.

The rule reverses a 2016 Obama administration-led rule opposed by CAHC that limited the use of short-term plans to 90 days, reinstating the previous standard of 12 months. 

Additionally, the final rule supports CAHC's longtime goal of allowing subsidy portability for consumers trapped under rising Obamacare costs by opening the door to disbursement of premium tax credits for short-term coverage options - which are, by definition, off-exchange plans - as part of a state's 1332 waiver program.

As the text of the rule explains: "States may be able to provide subsidies to purchasers of short-term, limited-duration insurance with funds provided under waivers authorized by section 1332 of PPACA should they choose to do so and should the waiver satisfy all applicable requirements." 

CAHC President Joel White released the following statement:

"CAHC has long supported efforts to preserve health plan choices for consumers. One-size-fits-some is not a workable approach to health insurance and we commend the Trump administration for taking decisive action that will protect and expand this affordable coverage option for up to two million Americans," said CAHC President Joel White. "We are also pleased that the rule supports our goal of providing subsidy portability to consumers who are squeezed by Obamacare's rising costs. Reaffirming the ability of states to allow premium tax credits for short-term plans as part of a state's 1332 waiver so long as all other requirements are met is an important step in paving the way for bolder, consumer-friendly reforms that will allow more choices for a broader array of off-exchange plans - giving Americans a way out from flawed Obamacare exchanges and finally disbanding's unfair monopoly on the private sector competition."

For background, see a comprehensive look at CAHC's years of advocacy on subsidy portability here