Government to Limit Use of Short-Term Health Plans

HHS plans to limit the use of short-term health plans and tweak the Affordable Care Act’s risk-adjustment program for health plans to account for people who need coverage for only part of the year. The program will also now track prescription drug usage as a factor in assessing risk. (Modern Healthcare)

The government’s move would limit short-term health coverage to an individual to less than three months and bar renewal, as opposed to the almost 12-month term that some plans are offering, along with a chance to renew.(CNBC)

The moves are aimed at improving the mix of healthy and sick enrollees, known as the “risk pool.” A risk pool that has been smaller and sicker than expected has contributed to financial losses for many insurers on the marketplaces. (The Hill)

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