Proposal would increase max duration of 'short-term' HC plans 

The U.S. departments of Health and Human Services (HHS), Labor, and the Treasury have released a proposed rule that would “change the maximum duration of [short-term, limited-duration health insurance] to less than 12 months, as opposed to the current maximum duration of less than three months.” 

A Centers for Medicare & Medicaid Services (CMS) fact sheet explains that, “Short-term, limited-duration insurance is a type of health insurance coverage that is designed to fill temporary gaps in coverage when an individual is transitioning from one plan or coverage to another form of coverage. This type of coverage is exempt from the definition of individual health insurance coverage under the Affordable Care Act (ACA) and is therefore not subject to the ACA provisions that apply to individual health insurance plans.” 

It also notes that, “The proposed rule includes measures to help consumers who purchase short-term, limited-duration policies understand the coverage they are getting. The proposal would require one of two versions of a notice to appear in the contract and in any application materials that the plan is not required to comply with ACA provisions.” 

CMS will accept comments on the proposed rule for 60 days.    

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