Communicating for America (CA) recently sent Tom Price, the newly named Secretary of the Department of Health and Human Services, a clear message – the enforcement of a new regulations on short term insurance plans needs to be delayed until a there is legislative clarity about how to replace Obamacare. The letter, written by CA chief executive officer, Jeff Smedsrud, outlines why delaying the enforcement of the new short term insurance regulation will benefit Americans who in a variety of circumstances might otherwise become uninsured.
Beginning April 1st 2017, the Health and Human Services short term regulation (81 FR 75316), which was approved in 2016 by the Obama administration to restrict all short term medical insurance plans to a 90-day duration, is scheduled to be enforced. Prior to this regulation, short term medical plans have been solely governed by state insurance regulations. In 36 states consumers were able to buy short term medical plans for up to 364 days.
CA along with other consumers groups, insurance agents and state regulators all strongly disagreed with the proposed rule during the comment period in 2016. CA believes the regulation is unnecessary, harmful to consumers and adds further instability to an already fragile individual insurance market. Although the law technically started on January 1st 2017, The Obama administration chose to delay enforcement until April 1st 2017. CA is asking Secretary Tom Price to use his administrative authority to further extend the non-enforcement to no sooner than July 1st 2017.
"Health insurance premiums have soared, and the number of options for consumers has declined. Consumers are scared and confused. Further limiting choices until there is some clarity and a viable legislative timeline for an ACA replacement is not in the best interest of individuals and families," wrote Smedsrud.
(Source: Communicating for America)
