May 1, 2018
Bonnie Cox, LWVIL President
Hilary Denk and Heather Cunningham, LWVIL Issues Co-chairs
Janet Craft and Margaret O'Hara Healthcare, Issues Specialists
RE: SB2388 SFA1 Short-Term Limited Duration Health Insurance Act
File a witness slip here before 5:00 pm on Wednesday, May 9th
, in support of SB2388 SFA1. The Senate Insurance Committee is scheduled to consider the bill at that time. The purpose of this bill is to regulate short term limited duration health plans. This will be accomplished by establishing a maximum coverage of 90 days in any given year. It will apply all of the consumer health insurance protections that are already included in the IL insurance code and state regulation. It will also require clearly written disclosures on all sales and marketing materials for these plans.
WHY IT MATTERS:
There are proposed rules from HHS which would greatly expand the coverage period of short term plans from 90 days to 364 days. Short term plans are not regulated by the ACA or the IL insurance code. They can discriminate against people with pre-exisiting conditions, they regularly rescind coverage when people become sick, and they are not required to cover any of the 10 essential health benefits. These plans are very confusing for consumers and an expansion in enrollment into short term plans could severely destabilize the individual marketplaces. There are signs nationally and here in Illinois that those who sell these plans are gearing up to expand their markets.