CMS: STM Limited to 3 Months - No Renewal Allowed

[Yagents]

The comments are a hoot. Ignorance is bliss.

Government moves to curb short-term health insurance to boost Obamacare risk pool

 

[Tkruger]

Funny. When ACA was first passed, I made a post on this forum about companies simply offering STM for a 12 month period so they can medically underwrite, and here we are. My question is how does CMS have the power to change STM rules when they are not subject to ACA in the first place, and are overseen by each state individually?

I'd like to know that as well. Seems like an Administrative over reach to me.

I was thinking about this whole situation. Do you think that this is an attempt of retribution from the carrier that exited most markets and then has been doing a serious marketing campaign for the STM’s they offer instead?

Is it possible that this is exactly what CMS\HHS is trying to battle against?

 

[Yagents]

This also puts IHC out of business if no STM, and if we're not allowed to cross sell supplement policies like accident/critical illness.

http://www.modernhealthcare.com/article/20160608/NEWS/160609920

HHS also hinted that more changes are to come.

The agency is also cracking down on the use of special enrollment periods. Starting June 17, consumers will be asked to provide significant documentation to prove eligibility to gain coverage outside of open enrollment. For example, if they claim they have had a child, they will need to provide birth certificates.

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Just when you thought they were done, they also want to kill Critical illness policies. I'm thinking pet insurance will be the next go to product.
My insurance license just became toilet paper.

Officials are also thinking about the possibility of banning the sale of critical illness policies and other policies that cover two or more specific diseases.

Federal regulators may try to kill critical illness insurance | LifeHealthPro

Batch of regs:

https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/RA-OnsiteQA-060816.pdf

 

[somarco]

how does CMS have the power to change STM rules when they are not subject to ACA in the first place, and are overseen by each state individually?
I'd like to know that as well. Seems like an Administrative over reach to me.

CMS did not have ability to regulate rates, loss ratio's, etc but that didn't stop them. States controlled all that as part of McCarran-Ferguson Act but the states and carriers capitulated to Shebitchius and Obama.

 

[Ann H]

Another big Obama Administration move. This could turn for them or against them.

For - we have to stop these limited policies and all their abuses.

Against - just when Obamacare rates are spiking, the Administration shuts off other choices that are less expensive. More Americans are choosing to be uninsured now.​

By the way, this doesn't actually stop the use of STM. About 80% of the people who chose a 12 month STM in lieu of ACA, will chose four 3-month STMs from various carriers instead. Even fully informed about the tax penalty and the broad interpretation of the pre-ex exclusion, those folks aren't going to buy ACA anyway. Not that I'm promoting that, mind you, just sayin'.

 

[AllenChicago]

Not only did they just crush the STM market, but they will also attempt to steal your T65 medicare clients. Oooops......they were never your client anyways.

FOR IMMEDIATE RELEASE
June 8, 2016


With millions of Americans insured through the Health Insurance Marketplaces, it's clear that Marketplace coverage is a product consumers want and need and an important business for insurers, with several major issuers expanding their Marketplace presence.

If consumers wanted Marketplace coverage so badly, there wouldn't be a need for CMS to squash STM plans. They started the press release with a lie, and then contradicted that lie in subsequent paragraphs.

Combine the squashing of STMs with the rule that agents can't suggest ancillary products to our Marketplace clients, and it's clear that HHS is severely overreaching its authority.

 

[yankee466]

I guess next they'll have to eliminate Christian Share plans...using the logic of unfair to Muslims. Then we're all screwed!!!!

 

[Tsobo1]

Again the government getting involved where it shouldn't. Why is HHS not talking about increasing STM lengths since Obamacare is caving in on itself. Where are people going to go to get insurance? How many companies including the largest Unitedhealth has told everyone they will not be individual Obamacare insurance in 2017. Weren't we supposed to have all this competition and choices to chose from???? They better be pleading with STM plans to get more involved.

 

[Yagents]

Good point about Christian share programs, but that was written into the law with help of lobbyists. I may have to start going to church.

And don't forget about Obama doing in his own law with extending non grandfathered plans, keeping them out of risk pool, which was just extended again just 2 months ago until Dec 2017. Short memory I guess, or is this an attack on certain carriers, agents, and consumers skirting the law?

 

[agentinsure]

damn, and i was just thinking what a boondoggle STM would be this next year after some of the ACA rates requests of 40+% some carriers are putting in for get approved.

All of this upheavel demonstrates one thing for sure, its a great time to be a attorney in America