Short-Term Plans Could Lead to Multiple Risk Pools

Executive Order on Short-Term Plans Opens Door to Sale of Supplemental Plans
– Inside Health Policy
Manatt’s Joel Ario, a managing director with Manatt Health, was interviewed by Inside Health Policy for an article on how President Donald Trump’s executive order to expand availability of short-term health insurance plans could impact the sale of supplemental plans.

Experts have speculated that short-term plans and supplemental plans could undermine the risk pool and that the result will be two populations: people who don’t believe they need certain benefits and don’t buy them, and people who will opt for a richer plan.

According to Ario, offering plans that are not Affordable Care Act-compliant could create two risk pools. Since the president may pass insurance regulations onto the states, the impact on those risk pools will vary across the country. While states will be “all over the place, as they were pre-ACA,” commissioners now have a heightened awareness of how regulations affect the individual risk pool and it is likely that more states will be stricter than they were before.

“There will be much more debate on the state level,” explained Ario.