Final answer:
The Affordable Care Act (ACA) prohibits health insurers from denying coverage due to pre-existing conditions, with one exception. Insurers can deny coverage if the plan is a short-term limited duration insurance (STLDI) plan, which is meant to provide temporary coverage during transitions or life changes.
Step-by-step explanation:
The Affordable Care Act (ACA), also known as Obamacare, prohibits insurers from denying health coverage due to pre-existing conditions. However, there is an exception to this rule. Insurers are still allowed to deny coverage if the plan is a short-term limited duration insurance (STLDI) plan. These plans are meant to provide temporary coverage for individuals who are transitioning between jobs or experiencing other life changes. STLDI plans usually have lower premiums but may have limited benefits and coverage compared to other health insurance plans.