How Do Noncompliant Health Plans Affect the Insurance Market?

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<p>The Affordable Care Act (ACA) helped to standardize health insurance coverage by requiring that new health plans cover a package of essential benefits, such as maternity care and prescription drugs, and by prohibiting insurers from charging more based on gender or health status. Yet President Trump, seeking to skirt the ACA’s regulated markets, has called on federal agencies to make it easier to sell short-term policies and association health plans with skimpier benefits.  </p><p>In a new post on <em>To the Point</em>, Mark Hall and Michael McCue examine the impact of allowing both “compliant” and “noncompliant” health plans to be sold side by side. Based on experience with the ACA’s grandfathered and grandmothered plans, they say, selling noncompliant plans will only split the individual market into an expensive segment for sicker people and a cheaper one for healthier people.</p> Read the post