Letter to U.S. Senate in Opposition to S.J. Res 63, the Disapproval of Short-Term Limited-Duration Plans

By at 10 October, 2018, 11:53 am

Dear United States Senator:

The Small Business & Entrepreneurship Council (SBE Council) strongly opposes S.J. Res 63, the Disapproval of the Short-Term Limited-Duration Insurance (STLDI) Rule. The flexibility provided to STLDI plans under the final rule adopted by the Departments of Treasury, Labor, and Health and Human Services is a welcome development for America’s entrepreneurial sector. The promises of Obamacare never came to fruition, as insurance costs skyrocketed and basic access to health care became more expensive and limited. Consumers need affordable options.

STLDI plans play a vital role in the marketplace, particularly when individuals and their families need coverage during career and work changes.  Many more people are cycling between full-time jobs and “gig” work, and temporary health insurance plans help fill the coverage gap at a reasonable cost.  Our regulatory system must take into account how people currently work, how they want to work if they have major life changes, or if they want to open a business. Insurance choices such as STLDI plans provide Americans with the flexibility they need when there is a break in coverage, a need for gap coverage, or to pursue their dream of opening a business.

In 2017, 57.3 million Americans (36% of the workforce) did freelancing work. Sometimes these turn into full-time businesses and other times freelancers cycle back into full-time jobs. The regulatory changes that have made STLDI plans more practical is common sense policy that fits the needs of workers and entrepreneurs who need short-term coverage.

Oppressive health coverage costs have weighed down entrepreneurship, economic dynamism and wages in the U.S. economy. This cost drain must be addressed to enable strong and sustainable economic growth and more entrepreneurship. Reform initiatives, such changes to STLDI plans, must be pursued and implemented to restore economic vitality and sustainable growth. SBE Council urges you to vote NO on S.J. Res 63.


Karen Kerrigan, President & CEO                                                      


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