"Obamacare Exempt" Plans - STLDI and ACA Coverage: Costs, Choice, and Tradeoffs

Joe Grogan is joined by Michael Cannon (Cato Institute) to break down short-term, limited-duration insurance (STLDI), also known as “Obamacare-exempt” plans. They explain why STLDI can be far cheaper than ACA exchange coverage, how renewal guarantees work, and why allowing more consumer choice can reduce pressure on exchange risk pools.

They also dig into the politics of pre-existing conditions, how ACA rules change insurers' incentives, and why coverage debates often miss the real drivers of cost, access, and quality. The conversation ends with a broader look at public trust, healthcare fear, and how policy choices shape what insurers can and cannot do.

Timestamps / Chapters00:01 – Intro00:23 – Michael Cannon joins + what STLDI is02:27 – STLDI explained: “Obamacare-exempt” plans, renewal guarantees, and lower premiums06:00 – ACA history: why STLDI was restricted07:46 – International comparisons + pre-existing conditions incentives and the Colette Briggs story12:10 – Why healthcare stays broken: regulation, lobbying, and “government-designed” systems16:59 – Subsidies and the politics of pre-existing conditions22:22 – Renewal guarantees, employer tax exclusion, and why Medicare entered the picture30:37 – Public trust after Brian Thompson’s murder and Cannon’s letter41:56 – Wrap-up

In This Conversation

What STLDI is and how it compares to ACA exchange plans

Why renewal guarantees matter for long-term protection

Risk pools, affordability, and why the “junk insurance” debate persists

Pre-existing conditions, politics, and how incentives affect networks and access

Why employer-based coverage and Medicare policy shaped today’s system

Key Takeaways

STLDI is a legal, consumer-driven coverage option that can reduce premiums and expand choice.

Renewal guarantees are a major consumer protection that changes the long-term risk story.

Pre-existing conditions policy is often debated emotionally, but incentives determine outcomes.

About Our GuestMichael Cannon is the Director of Health Policy Studies at the Cato Institute and a leading voice on the ACA, health insurance regulation, and market-based health reforms.