Health Coverage Choice Act This bill provides statutory authority for the Department of Treasury, the Department of Labor, and the Department of Health and Human Services rule dated August 3, 2018, regarding short-term, limited-duration health insurance plans. That rule increases the maximum authorized duration of such plans from less than 3 months (including renewals) to an initial maximum duration of less than 12 months (with a total duration of up to 36 months, including renewals).
The passage of HB 76 is expected to significantly alter the landscape of health insurance offerings in the state, as it facilitates increased access to short-term health plans. Proponents argue that these plans offer individuals and families more flexibility in choosing their health coverage, allowing them to opt for less expensive options that may not meet all the standards set by more comprehensive insurance plans under the Affordable Care Act (ACA). The bill is positioned as a way to bolster consumer choice in the health insurance market.
House Bill 76, known as the Health Coverage Choice Act, aims to amend title XXVII of the Public Health Service Act by providing a clear definition for short-term limited duration insurance. The bill proposes to increase the maximum authorized duration of such insurance plans from less than three months to an initial maximum of less than twelve months, with the possibility of extending the total duration to up to thirty-six months, including renewals. This expansion of the definition and duration aligns with regulatory changes made by the Department of Treasury, the Department of Labor, and the Department of Health and Human Services in 2018.
Despite its advocates, HB 76 faces criticism from various health advocates and insurance experts who caution that short-term limited duration insurance plans often provide inadequate coverage. Opponents argue that these plans can lead to higher out-of-pocket costs for individuals when they seek care that exceeds the limited coverage of such insurance. Furthermore, critics stress that by promoting short-term plans, the bill could undermine the risk pool for comprehensive plans, potentially driving up costs for those who rely on full coverage. The discussions around the bill highlight a broader debate over the balance between flexibility in health insurance options and the necessity for comprehensive healthcare protections.