“The trouble with government regulation of the market is that it prohibits capitalistic acts between consenting adults.”
– Robert Nozick
Following the 2016 regulations for the Affordable Care Act (ACA), many think tanks and policy wonks believed shortening the permitted length of short-term, limited-duration insurance would drastically reduce affordable coverage options for consumers. As a result, the Department of Labor, Health and Human Services, and the Treasury issued their collective 2018 final regulations to lengthen the maximum period of short-term, limited-duration insurance. This was done to increase affordable consumer choice for health coverages.
The three departments worked together under using the policy triangle of the existing ACA regulations, Trump’s 10/12/2017 Executive Order, and the Tax Cuts and Jobs Act — which effectively removes the ACA’s individual mandate penalty. In taking into account all these laws and policies, the final regulations amended the definition of short-term, limited-duration insurance so that it may offer a maximum coverage period of less than 12 months after the original effective date of the contract.
If your company needs advice on how these government regulations affect your company and your employees’ healthcare, contact a BenefitCorp consultant here.