In a letter spearheaded by CHA, nine allied children’s organizations expressed strong concerns with the implications of the Departments of Treasury, Labor and Health and Human Services proposed rule on Short-Term, Limited Duration Insurance (STLDI) plans for children, pregnant women and their families. The letter notes that the proposed extension of the duration of STLDI plans, which are designed to fill temporary gaps in coverage in the individual commercial market, from three to 12 months or longer, could leave families with children who choose these plans with less comprehensive coverage.
STLDI plans do not have to comply with the ACA consumer protections, including coverage of essential health benefits or pre-existing conditions. As a result, families enrolled in these plans could find that their plan does not cover needed services and be subjected to much greater out-of-pocket spending when illness or injury occurs. The letter urges the departments to not finalize the rule, but includes several recommendations to help mitigate its impact on children, in the event that it is, in fact, finalized as expected.