American Association of Ancillary Benefits et al. v. Kennedy et al.

Why this Matters:

The plaintiffs allege that a federal regulation concerning short-term limited duration health insurance and fixed indemnity policies violates the nondelegation doctrine and the Administrative Procedure Act. As such policies do not have to comply with the Affordable Care Act’s market reforms, insurers can charge higher premiums based on health status, exclude coverage for preexisting conditions, impose annual or lifetime limits, opt not to cover entire categories of benefits, or rescind coverage altogether under such policies.

Potential Impact:

Without reasonable safeguards and notice requirements related to short-term and fixed indemnity policies, consumers could face higher individual market premiums and those seeking comprehensive coverage could unintentionally be exposed to significant financial liability.