Aetna, headquartered in Hartford, was more supportive of the administration's plan.
Brokers can make commissions of about 20% on short-term plans, compared with 5% on ACA plans.
In a press release, U.S. Health and Human Services Secretary Alex Azar says, "These plans aren't for everyone, but they can provide a much more affordable option for millions of the forgotten men and women left out by the current system". "President Trump is bringing more affordable insurance options back to the market, including through allowing the renewal of short-term plans". But that's because they are allowed to exclude those with pre-existing conditions and base rates on an applicant's medical history, unlike Obamacare plans.
Instead, the insurer has yet to cover any of the cost, leaving the family paying about $800 a month in premiums to keep a plan she says is inadequate.
The Trump administration on Wednesday said it will allow insurers to sell short-term health care plans as a cheaper option to ObamaCare but the policies will not cover maternity care, prescription drug costs or pre-existing conditions. "We're finally taking care of our people". The IHC Group is an organization of insurance carriers headquartered in Stamford, Conn.
The new rules will require insurers to include clear explanations about what is covered, and to warn consumers that they do not have an automatic right to renew their policies when they expire.
Up to now, short-term health insurance has been a niche product, covering people for several months or less than a year. Still, the fact that people with pre-existing conditions - which could be anything from acne to cancer - can be discriminated against or not have bills related to the condition covered will likely cause many people with health problems to avoid the new plans. Typically, they don't provide free preventative care or maternity, prescription drugs and mental health benefits.
Coleman says the average use of short-term coverage was almost seven months, so many consumers were having their deductibles reset three times.
Young and healthy folks may like these plans because they come with lower monthly premiums.
The Trump administration estimates that 200,000 Obamacare enrollees will move to short-term plans next year. According to a report by the National Association of Insurance Commissioners, the policies paid out an average 55 percent of their premiums in actual health care previous year. Last month, the administration announced it was freezing payments that are part of an Obamacare program that protects insurers with sicker patients from financial losses.
But that won't matter starting in January, when the penalty will disappear as a result of a tax overhaul that the Republican-led Congress adopted late past year.
Short-term plans, if they appeal to many consumers, could also play a role.
Short-term plans have been around for decades, meant as a stopgap for job changers, students and others who found themselves without coverage.
Such health plans have long existed, and their idea was to provide temporary coverage for people who are between jobs or have other brief need for low-cost insurance. As a result, people who buy such policies have risked a tax penalty that the law places on those who violate the coverage mandate. What if they had the constant worry of how to pay for their insurance?
Although attempts to repeal the Affordable Care Act - also known as Obamacare - have failed, Columbus City Attorney Zach Klein told The Columbus Dispatch that Trump has sought to sabotage the healthcare law through his words and actions since he took office.
Four cities on Thursday sued President TrumpDonald John TrumpPro-Trump pastor: Trump is "the most pro-black" president I've ever seen Trump renews calls for interview with Mueller: report CNN's Acosta: Hannity is "injecting poison into the nation's political bloodstream" MORE, arguing that he is violating his constitutional duty to enforce the law by "sabotaging" ObamaCare.