The administration’s announcement to state insurance commissioners came during a Saturday (March 24) closed door meeting with Center for Consumer Information and Oversight officials at the National Association of Insurance Commissioners spring meeting in Milwaukee, Wisconsin.
Comments on the proposed short term-limited duration plans rule are due April 23, and CMS representatives told the insurance commissioners they planned to wait until early fall, or potentially later, to release the final rule, according to those at the meeting. Furthermore, CMS will wait to implement the rule until 2019 rather than put it into effect right away.
The proposed rule, which reverses Obama era regulation that limited short term plans to three months, would let individuals purchase health insurance plans that do not meet the Affordable Care Act’s requirements for a period of 364 days.
Many insurers in the room expressed concern that the plans need to come out sooner so they can set their 2019 rates. Insurers begin setting their 2019 rates in the spring, finalize them in August and send the updated premiums to consumers on Oct. 1.
The commission said that the Trump administration officials did not give any reason as to why they were delaying the finalization of the rule until well after insurers set their 2019 rates.
A CMS official would not say when the rule would be released when asked by Inside Health Policy but said that the rule will not be effective until 60 days after it is finalized.
CMS remains committed to implementing the actions outlined in the President’s executive order in a timely and deliberate manner, the CMS official said.