NBC News quoted Manatt’s Joel Ario, a managing director with Manatt Health, in an article discussing the limitations of non-Affordable Care Act–compliant short-term health insurance plans.
An Obama administration rule limited short-term health plan coverage to three months, the publication explained, because these plans were meant to fill the gap between more substantial policies. Now, insurers are sidestepping that rule by packaging consecutive 90-day plans with a one-time upfront medical review.
Since short-term plans fall short of ACA standards, policyholders are considered uninsured and face a hefty IRS tax penalty.
“If you absolutely cannot afford [an ACA-compliant plan]—and you are sure you are healthy—look at other plans. But they all come with the caveat that if you get sick, they won’t give you much coverage,” explained Ario.
Read the article here.