Critics: consumers should be wary of short-term health plans

FORT LAUDERDALE, Fla (AP) — Consumers who bought short-term health insurance thinking they had found a better deal than “Obamacare” during the open enrollment season may be in for a shock when they show up at their doctor’s office this year.

The low-cost plans aren't required to cover basics such as prescription drugs or maternity care.

The Trump administration rolled back restrictions on short-term plans in 2018. But critics quickly labeled them junk insurance, warning they come with gaps and don’t have to cover pre-existing medical conditions.

Trump said the plans will offer “great health care at a much lower price," at a White House event in 2018 when the changes were announced, describing them as “somewhat different, result the same."

With premiums about a third of the cost of comprehensive coverage, short term plans are significantly cheaper but don't meet requirements under the Affordable Care Act. And while they cover major catastrophes such as a car accident, they don't have to cover the law's “essential” benefits — including mental health and substance abuse treatment and they won't cover pre-existing conditions.

The latest enrollment season, which ended last month, saw a big promotional push for short-term plans. It marked the second year the plans were sold under loosened restrictions, and some insurance agents say they fielded calls from confused consumers fooled by low monthly premiums but who missed the fine print about limited benefits. Coverage on most plans was taking effect in January.

Insurance experts also complained about aggressive and misleading marketing tactics by some third-party sellers targeting Hispanics and low-income consumers.

Nonetheless, short-term plans represent a fraction of the overall market.

Short-term plans...