The Marketing of Short-Term Health Plans
Brief Jan-31-2019 | | 1-min read
In 2018, a federal rule changed the definition of short-term limited-duration insurance (STLDI) so that it could be sold as a full-year substitute coverage for traditional health insurance. This rule change created new marketing opportunities for insurance companies and brokers. STLDI can be risky for consumers because many people purchase plans mistakenly believing that they are as comprehensive as traditional, ACA-compliant plans.
Authors assess short-term limited-duration insurers’ marketing tactics in the wake of the new federal rules and, through interviews with insurance officials in Colorado, Florida, Idaho, Maine, Minnesota, Missouri, Texas, and Virginia, how regulators have evaluated and prepared for this new market.
Consumers shopping online for health insurance will often find websites and brokers selling short-term plans as a replacement for ACA-compliant coverage. These websites and brokers often fail to provide consumers with the detailed plan information necessary to inform their purchase.
The Center on Health Insurance Reforms at Georgetown University’s Health Policy Institute is a nonpartisan, expert team of faculty and staff dedicated to conducting research on the complex and developing relationship between state and federal oversight of the health insurance marketplace.
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