Des Moines - The Centers for Medicare and Medicaid Services (CMS) released today a final rule amending the definition of short-term, limited-duration insurance. The previous rule set a maximum duration for these plans of less than 3 months. Under the revised rule released today, these plans may have a maximum duration of less than 12 months and may be renewed or extended for up to 36 months.
“I’d like to thank the Departments of Health and Human Services, Labor and Treasury for acting on the concerns Governor Reynolds and I have been raising regarding the need for state flexibility and renewability regarding short-term, limited duration plans. Each state is different and the ACA’s one-size-fits-all approach is not working for Iowans. I look forward to using this state flexibility to issue new rules that ensure consumer protections are in place for Iowans who purchase these plans,” Iowa Insurance Commissioner Doug Ommen said. “Roughly 26,000 Iowans fled Iowa’s ACA individual health insurance market in the past year due to skyrocketing premium and deductible costs. Those Iowans need an option to purchase a more affordable plan with coverages that fit their individual needs.”
The Iowa Insurance Division previously made comments this spring regarding this CMS rulemaking.