On August 1, 2018, the Internal Revenue Service, the Department of Health and Human Services (HHS), and the Department of Labor (collectively, the Departments) released a final rule that amends the definition of short-term, limited-duration insurance. HHS also released a fact sheet on the final rule.
According to the Departments, the final rule will provide consumers with more affordable options for health coverage because they may buy short-term, limited-duration insurance policies that are less than 12 months in length and may be renewed for up to 36 months.
The final rule will apply to insurance policies sold on or after October 2, 2018.
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by Karen Hsu
Originally posted on ubabenefits.com
I work for the Greater Madison Chamber of Commerce and we are looking into the possibility of offering health plans to our members, small business owners who may not currently have access to an affordable plan. After reviewing the final rule documents, I’m unclear whether it would be in our best interests, given that the plan rates may not be perceived as affordable as we’d hoped, or there is enough competition from other health plans that we don’t have enough members opting in to offset the cost of administration. Do you have any purview into this issue?