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July 24, 2020

DC Circuit Upholds Short Term Limited Duration Health Plan Rule

On July 17, the United States Court of Appeals for the D.C. Circuit upheld HHS short term, limited duration health insurance plan rule, thereby affirming the lower court’s summary judgment decision.  Some critics claim short term health plans are “junk,” and that people who purchase these plans fall prey to deceptive sales practices, such as not understanding what is covered, not realizing these are not guaranteed, as well as these plans having the ability to exclude pre-existing conditions.  However, supporters of the decision believe because HHS had the authority to issue the rule it did which ultimately led to the legal challenge. The D.C. Circuit has yet to issue a decision on HHS’s Association Health Plan rule, whose legality was successfully challenged in District Court.