Today, the Trump Administration continued its summer of sabotage of the health insurance marketplace by finalizing a rule to allow the sale of short-term health insurance with renewability of up to 3 years – essentially offering a shadow market to the comprehensive plans offered by the Affordable Care Act (ACA). While touted as an affordable option, these plans are cheap for a reason: they lock out people with pre-existing conditions and for those “healthy” individuals who are able to buy coverage, they exclude prescription drugs, maternity care, mental health coverage and even treatment of injury resulting from playing organized sports.
Fortunately, Governor Rauner has the opportunity to stop this rule from harming Illinois residents. A bill sitting on his desk – HB 2624 – limits the sale of short term health plans in Illinois to 180 days in any given year and would eliminate confusion by requiring insurers who sell these plans in Illinois to have clear, plain language on all sales and marketing materials.
Without action at the state level, the new rule will entice healthy individuals to purchase these inadequate plans and result in higher premiums or coverage denial for 5 million individuals in Illinois with illnesses and pre-existing conditions. According to the Urban Institute, this rule along with the elimination of the penalty for not having health coverage, would mean an estimated premium increase of 20% for Illinois consumers. In addition, 327,000 more Illinoisans would lack comprehensive health coverage, because they will either become uninsured or will end up in short-term plans rife with limitations, exclusions, and missing benefits.
Illinois should establish reasonable limits and consumer protections for short-term plans. Please join Protect Our Care Illinois in urging Governor Rauner to sign HB 2624 which will help protect Illinois consumers from financial hardships caused by the federal government’s new rule.