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Short-Term Health Disclosures Tend to Stink: Regulator to Congress | ThinkAdvisor
One big problem with expanding consumer use of short-term health insurance is that consumers may have no good way to know what a policy will really cover.
Jessica Altman, the Pennsylvania insurance commissioner, presented that argument Wednesday, in Washington, at a hearing organized by the House Health Energy and Commerce health subcommittee.
A typical short-term health insurance policy covers much less care than ordinary major medical plans cover, and consumers often buy the coverage without understanding the limitations, Altman said at the hearing.
“The plans are sold without consumer access to provider directories, formularies, sample coverage documents, summaries of benefits and coverage, or a uniform glossary,” Altman said.
“In the past two years, our department has suspended the licenses of eight producers who misrepresented the coverage available to consumers who purchased STLDI,” Altman said. “But, even in cases where there is no misrepresentation to consumers, it is difficult to understand the extent of the benefit limitations included in these plans until a consumer needs health care and tries to use them.”
One big problem with expanding consumer use of short-term health insurance is that consumers may have no good way to know what a policy will really cover.
Jessica Altman, the Pennsylvania insurance commissioner, presented that argument Wednesday, in Washington, at a hearing organized by the House Health Energy and Commerce health subcommittee.
A typical short-term health insurance policy covers much less care than ordinary major medical plans cover, and consumers often buy the coverage without understanding the limitations, Altman said at the hearing.
“The plans are sold without consumer access to provider directories, formularies, sample coverage documents, summaries of benefits and coverage, or a uniform glossary,” Altman said.
“In the past two years, our department has suspended the licenses of eight producers who misrepresented the coverage available to consumers who purchased STLDI,” Altman said. “But, even in cases where there is no misrepresentation to consumers, it is difficult to understand the extent of the benefit limitations included in these plans until a consumer needs health care and tries to use them.”