Association for Community Affiliated Plans, et al. v. U.S. Department of Treasury, et al.

Why this Matters:

The plaintiffs, a coalition of consumer advocates and safety net health plans, allege that a federal regulation expanding access to short-term, limited-duration insurance coverage violates the Administrative Procedure Act and the Health Insurance Portability and Accountability Act. As short-term plans do not have to comply with the Affordable Care Act’s market reforms, short-term 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.

Potential Impact:

Efforts to expand access to and enhance enrollment in short-term, limited-duration plans sale would result in adverse selection against the Affordable Care Act individual market, raising premiums for consumers with health needs.