Idaho Gov. Butch Otter, R, and state insurance commissioner Dean Cameron announced in January they would allow insurers to offer plans that didn’t meet ACA regulations in an effort to sell more affordable coverage. Though Ms. Verma deemed the plans illegal, she did offer to help the state craft future policies compliant with ACA regulations.
“Notwithstanding our concerns regarding the Bulletin’s inconsistency with the Part A market requirements, we believe that, with certain modifications, these state based plans could be legally offered under the PHS Act exception for short-term, limited duration plans,” Ms. Verma wrote. “I encourage you to continue to engage in dialogue with my staff regarding this and other potential options.”
Mr. Cameron said the letter did not come as a surprise, and he added that state officials did not plan to pursue the short-term alternative proposed by the federal government.
“We’ve been expecting this letter for some time … saying, ‘Hey, you’ve got to show us how you are substantially enforcing [the law],'” Mr. Cameron told the Idaho Statesman. “Granted, [short-term plans] may be an easier approach for them to legally defend, but it won’t be for us.”
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