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Federal court upholds Trump administration rule on short-term plans

A Washington, D.C., federal court upheld the Trump administration’s regulations extending existing 90-day short-term limited duration plans to 364 days (and with renewals, up to three years). While these short-term plans often cost less, they are exempt from the ACA’s coverage requirements and can deny coverage based on pre-existing conditions. The plaintiffs failed to demonstrate that extending short-term plans would incentivize healthy individuals to leave the ACA’s existing health exchanges and drive up premiums for others. The Court also rejected arguments that the regulations would irreparably harm patient care and access to coverage. Plaintiffs have already indicated plans to appeal. The New York State Department of Financial Services has confirmed that state law prohibits STLD plans in the individual and group health insurance markets, regardless of federal regulatory changes. Contact: Cristina Batt

Published July 26, 2019