Feds Finalize Strict Short-Term Plan Limits, Walk Back Fixed Indemnity Crackdown
Trade groups representing health insurers and insurance agents are giving mixed reviews to a recently finalized rule that reinstated strict limits on short-term, limited duration insurance (STLDI) plans.
The rule, first proposed in July 2023, sought to revive Obama administration-era standards regarding STLDI plans — which are exempt from Affordable Care Act consumer protections such as barring insurers from denying coverage to people with preexisting conditions. Both the Obama and Biden administrations were concerned that consumers often mistake such plans for comprehensive coverage, potentially leaving them with nasty surprises when they need care.
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