The Arkansas Insurance Department has issued a warning regarding short-term health plans and reminded producers selling such plans they are required to warn consumers that these plans do not meet the minimum essential coverage requirements of the Affordable Care Act.
In AID’s announcement, Arkansas Insurance Commissioner Allen Kerr said short-term, limited-duration insurance (STLDI) health plans “have been available to consumers for decades, but with recent changes to federal rules consumers should be aware of high-pressure sales pitches claiming short-term plans are ACA-compliant—which they are not.”
They key differences between short-term, limited-duration insurance plans with health plans compliant with the Affordable Care Act (ACA) are:
- Coverage is less than 12 months,
- Not required to offer same level of benefits (maternity, prescription drugs, dependents, etc.),
- Can refuse coverage or charge higher premiums based on health history, and
- Not required to cover pre-existing conditions.
- Those selling STLDI plans are required to warn consumers that these plans do not meet the minimum essential coverage requirements of the ACA.
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