AHA Statement on Proposed Short-Term Health Insurance Plans

Rick Pollack

President and CEO

American Hospital Association

February 20, 2018

Patients and families depend on health insurance to access and be able to afford the care they need when they need it. Today’s proposed rule is a step in the wrong direction for patients and health care providers because it would allow insurers to sell products that do not constitute true “insurance.” These products would appear cheaper to consumers, but would do so at a significant cost: by covering fewer benefits and ensuring fewer patient protections, such as coverage of pre-existing medical conditions. In addition, the expansion of these types of plans could undermine the individual market by concentrating the risk of less healthy individuals in those markets, driving up the cost of comprehensive coverage. Many vulnerable individuals who rely on the marketplaces for comprehensive coverage could be left without affordable options.

Many consumers will be unaware of the gaps in coverage they could experience if enrolled in one of these “short-term limited duration” products. Undoubtedly, hospital and health systems would incur even more bad debt, challenging their ability to serve their communities.

The AHA strongly believes that patients should have access to affordable, comprehensive health care coverage options, and we encourage the Administration to achieve this goal without removing critical consumer protections for patients.

Contact:          Marie Johnson, 202-626-2351, mjohnson@aha.org
                       Colin Milligan, 202-638-5491, cmilligan@aha.org

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About the AHA

The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at www.aha.org.