New Short-Term Health Plans Have Large Coverage Gaps

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New Short-Term Health Plans Have Large Coverage Gaps
New Short-Term Health Plans Have Large Coverage Gaps

THURSDAY, Aug. 2, 2018 (HealthDay News) -- There are large coverage gaps in short-term health plans that were approved Wednesday by the Trump administration, and are described by critics as "junk insurance."

The plans are meant to be a low-cost alternative to Obama-era plans with high premiums, but they don't have to cover existing medical conditions and they provide limited benefits, the Associated Press reported.

The plans can last up to 12 months and be renewed for up to 36 months, but there's no federal guarantee of renewability. A disclaimer with the plans states that they don't meet the Affordable Care Act's requirements and safeguards, the AP reported.

"The broader availability and longer duration of slimmed-down policies that do not provide comprehensive coverage has the potential to harm consumers, both by making comprehensive coverage more expensive and by leaving some consumers unaware of the risks of these policies," Justine Handelman, senior vice president of the Office of Policy and Representation for the Blue Cross Blue Shield Association, told the AP.

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