HHS announces proposed rule, other actions to improve Marketplace risk pool

The Department of Health and Human Services today announced a proposed rule and other actions aimed at strengthening the risk pool for the Health Insurance Marketplaces. Under the proposed rule, issued with the departments of Labor and Treasury, short-term limited duration policies only may be offered for less than three months and cannot be renewed, HHS said. Issuers also would be required to notify consumers that such coverage is not minimum essential coverage and will not prevent a tax penalty under the Affordable Care Act’s health coverage requirement. The rule, which also includes provisions affecting expatriate health plans, travel insurance and supplemental health insurance, will be published in the June 10 Federal Register with comments accepted for 60 days. In future rulemaking, HHS said it intends to propose including a risk adjustment factor for partial-year enrollees beginning for benefit year 2017, and incorporating prescription drug use data in risk adjustment beginning for benefit year 2018. Starting June 17, individuals enrolling in coverage through Special Enrollment Periods will be asked to provide certain documents consistent with a new confirmation process announced in February, HHS said. The documents are listed in a new model eligibility notice for SEPs.