CMS: STM Limited to 3 Months - No Renewal Allowed

[MBSC]

Did CMS/HHS push this new rule into effect already?

No, the implementation cannot be before the public comment period closes on 8/9/16.

 

[Yagents]

I read it, but don't see how this reversal "changes our game". Please share your reasoning, YAgents. TIA.

With ACA crashing, indemnity plans may pick up steam.
The administration can no longer block it by requiring MEC.
Our accident / critical illness portion of biz is not dead.

 

[KennyWest]

With ACA crashing, indemnity plans may pick up steam.
The administration can no longer block it by requiring MEC.
Our accident / critical illness portion of biz is not dead.

Seen this?

Indemnity health insurers win major ACA court fight

Indemnity health insurers win major ACA court fight | LifeHealthPro

 

[Yagents]

Ponder this..........2 out of 3 people are exempt from penalty.

The number of returns showing taxpayers owed shared responsibility penalty amounts fell 15 percent, to 5.6 million for 2015, from 6.6 million for 2014.

The number of returns claiming exemptions from the ACA individual coverage mandate held steady at about 11 million.

7 must-know new ACA tax administration facts | LifeHealthPro

 

[AllenChicago]

No, the implementation cannot be before the public comment period closes on 8/9/16.

OK.. Thanks. BCBS-IL sees the handwriting on the wall and took a pre-emptive move by immediately cancelling all STM sales.

With the exception of the Pre-X limitation, BCBS-IL STM was better than ACA policies. ( Widest PPO Network, $20 Doc Copay, $1,000 OOP..and less expensive than ACA.) The Illinois Blue Cross executives were probably looking for an excuse to stop selling STM, and HHS handed it to them.

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With ACA crashing, indemnity plans may pick up steam.
The administration can no longer block it by requiring MEC.
Our accident / critical illness portion of biz is not dead.

OH.. Now I see what you mean, YAgents. IMO, most indemnity plans are just a time-bomb ready to blow. But relief for Accident and Critical Illness is welcome.

 

[somarco]

Pre-ex is a BFD, AC. Most STM plans had 5 yr look back. If the STM didn't cover pre-ex and only on the hook for 6 months (or less) that is HIGHLY profitable business (if priced right).

 

[AllenChicago]

Pre-ex is a BFD, AC. Most STM plans had 5 yr look back. If the STM didn't cover pre-ex and only on the hook for 6 months (or less) that is HIGHLY profitable business (if priced right).

Right on Somarco. That's why I pointed out that the BCBS-IL Pre-Ex exclusion was a negative aspect of their STM. But it beat the pants off of every other STM in terms of price and benefits.

 

[hamben]

I would hope all agents have at least commented on the proposed rule.
Taking away an alternative to the ACA mess is not a cure for the ACA.
Here is the link to leave a comment. only 28 days left.
https://www.regulations.gov/document?D=IRS-2016-0021-0001

 

[Yagents]

I think it's cute when people think they can still make a difference in the outcome of an HHS ruling.

 

[yorkriver1]

I am a bit more in favor of STM in some situations after the reminder from another post about some of the high out of pocket or non coverage parts of insurance from the good old days. No maternity, my addition, limits on max for prescriptions--a separate max out of pocket for that.