The Court of Appeals for the D.C. Circuit recently upheld a federal regulation allowing for the expanded access to short term health insurance policies. The ruling rejected an appeal by consumer groups that challenged the regulation on the grounds that it was bad for consumers and was an attempt to do an “end-run” around the requirements of the affordable care act. The groups filed the complaint in 2018.
Originally short term health insurance policies provide “gap coverage” for individuals in between jobs or without insurance until open enrollment. However, when Obamacare became effective some companies began selling them as alternatives to Obamacare policies. Unfortunately, these policies have serious gaps in coverage. We have a FAQ post about these policies here and a video discussing these policies and how they can affect you here.
Unfortunately for consumers, the Court of Appeals ruled that the regulation did not conflict with HIPPA and the ACA and fell within the agencies’ rulemaking power. Upholding the ruling from 2018 allows companies to continue to market these short-term policies as comparable to full-coverage ObamaCare plans.