Despite many major health care groups opposing the expansion of eligibility for short-term duration health insurance, federal regulators decided to go through with approving the regulation. Originally, these plans were only allowed to be used for up to three months, with no renewals possible. The new ruling has changed things so that people can have these plans for up to 364 days and even renew them for up to a maximum of 36 months. This expansion is currently in effect
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Short-Term Limited Duration Plans Put Power into the Hands of the Big-Time Insurance Companies
Short-term health insurance policies are excluded from the Affordable Care Act’s requirements. As a result, these policies put a lot more power into the hands of the insurance companies. The way these plans have been worded allows insurance companies to choose not to insure individual with certain conditions and exclude coverage for pre-existing conditions. These policies also are not guaranteed renewable. This means that if an individual using these plans gets sick or injured, the insurer can choose not to continue coverage and may deny claims completely.
Not only do these health insurance plans allow big insurance companies to cherry-pick their insureds, they also allow the insurance companies to be specific about what types of coverage they will provide. For instance, they can cover general health or dental health while completely avoiding coverage for mental health. Most of the STLD health plans do not cover other important areas such as pre-existing conditions, mental health, substance abuse treatment, prescription drugs, or maternity care. To make matters worse, what is a pre-existing condition can be very unclear under one of these policies.
Individual Health Insurance Market Takes a Devastating Hit That Only Helps the Young and Healthy
As if all the selective coverage isn’t bad enough, it actually gets worse. The extensive availability of these types of plans is going to have devastating effects on the individual health insurance market as a whole. STLD health insurance plans are only optimal for the young and healthy, but even these individuals can be abandoned if they end up with a health condition.
With a lot of profitable customers leaving for more affordable health care coverage, individual health insurance companies will be forced to increase premiums for their more high-cost health care customers. This will force many people with preexisting conditions, such as those with multiple sclerosis or cancer, to get very little coverage or even leave the market altogether.
Johnstone Carroll Fights Big Insurance Companies on Behalf of Victimized Alabama Clients with Personal Disputes or Claims
With this tragic new ruling for insurance companies, many sick and afflicted people in Alabama will be in danger of having very little health insurance coverage, if any at all. Johnstone Carroll is here for their clients. Our experienced Birmingham attorneys are ready and willing to fight insurance companies on your behalf. If you have a dispute or claim that one of these companies is fighting you on, our law office can stand by your side, legally advise you on your options, and, when necessary, fight for you court. Call us today at 205-383-1809 or contact us online to get a trusted professional litigator on your side.