States: Until Washington Repeals ObamaCare, Keep Mini Insurance Plans Limited

The old advertisement admonished consumers that, “You can pay me now…or pay me later.” Proposed changes to short-term health insurance policies – for all of their philosophical merits – instead could lead to a scenario where everybody pays, all the time. The plan would permit state insurance commissioners to expand the use of short-term, limited-duration health insurance for people experiencing a lapse in coverage. Currently, these options carry a three-month limit before the individual would need to sign up for a longer-term plan through Affordable Care Act (ACA) exchanges. The proposed new rule would grant state insurance commissioners leeway to extend these short-term plans to periods lasting up to 12 months, and could potentially allow people to renew them after that period has elapsed.