HR6420-119

What This Bill Does

The Affordable Care Economic Stability and Small Business Act, or ACCESS Act, responds to concerns about rising health coverage costs for individuals and small businesses by expanding the statutory treatment of short-term limited duration insurance. It amends the Public Health Service Act to define short-term limited duration insurance as health insurance coverage under a contract with an expiration date less than 12 months after the original effective date and total duration of no more than 3 years when renewals or extensions are counted. It also applies section 2703 renewability rules to short-term limited duration insurance by treating references to individual-market health insurance coverage and health insurance issuers as including short-term limited duration insurance and issuers. At application, an individual may decline renewability, and the contract must specify whether the individual opted for renewability or no renewability. The changes apply to short-term limited duration insurance contracts that take effect on or after enactment.

Who Benefits and How

Consumers seeking lower-premium or temporary coverage benefit because federal law would allow short-term policies with initial terms under 12 months and total duration up to 3 years. Small business owners and workers transitioning between jobs benefit if these plans provide a cheaper temporary option. Health insurance issuers benefit from a clearer federal definition and a broader market for renewable short-term coverage. Insurance brokers may benefit from demand for coverage that fills employment or coverage gaps.

Who Bears the Burden and How

Consumers who need comprehensive ACA-compliant benefits may bear risk if short-term plans have narrower benefits, underwriting, or exclusions. State insurance regulators and federal health insurance administrators must apply the federal definition and renewability rules. Health insurance issuers must specify renewability choices in contracts and comply with the new treatment. ACA marketplace risk pools may face pressure if healthier consumers choose cheaper short-term coverage.

Key Provisions

• Amends the Public Health Service Act to define short-term limited duration insurance.
• Sets an initial contract expiration under 12 months and total duration of no more than 3 years including renewals or extensions.
• Applies renewability rules to short-term limited duration insurance and issuers.
• Allows applicants to decline renewability and requires the contract to specify the renewability choice.
• Applies the changes to contracts that take effect on or after enactment.