Non-ACA-Compliant Plans and the Risk of Market Segmentation

“On March 23, 2018, a group of consumer representatives to the National Association of Insurance Commissioners (NAIC) released a new report on the risks of health coverage that does not comply with the Affordable Care Act’s consumer protections.

The report discusses concerns about association health plans and short-term plans–both of which would expand under recently proposed federal rules–as well as health care sharing ministries and transitional plans. Oversight by state insurance departments is critical to protecting consumers and states’ markets from the fallout these plans can cause, particularly given repeal of the individual mandate penalty beginning in 2019, which will contribute to higher premiums and market instability.”