CEO Statement on Short-Term Limited Duration Health Plans

Allowing insurers to offer short-term, limited-duration health plans (short-term plans) is just the latest attempt by the Trump Administration to undermine the Affordable Care Act (ACA). L.A. Care Health Plan is on record supporting legislation that will prohibit the sale of such plans in California. The Trump Administration has touted the plans as increasing consumer choice, but the truth is, these plans could hurt consumers.

The short-term plans do not have to cover pre-existing conditions, provide essential health benefits or include adequate provider networks — all protections afforded under the ACA. Further, the short-term plans could destabilize the ACA risk pools which are designed to keep costs low for everyone.

Healthy, young individuals could move from purchasing coverage on the Exchange to a lower-cost short-term plan with minimal benefits.  Short-term health plans will raise overall costs of health care across the state. The best option, for the people of California, is to preserve the advancements that the ACA has made in California's health care.  

John Baackes
CEO, L.A. Care