Biden Administration Rolls Back Limit on Short-Term Health Plans

July 7, 2023

The Biden administration and the US Department of Health and Human Services (HHS) have put forward a proposed rule that would set the limit for short-term health insurance to 4 months, reversing a Trump-era rule that gave them durations up to one year with the chance of renewal. Democrats derided these forms of insurance as “junk insurance,” noting that although they are cheap, they have poor coverage and are only meant to serve as a stop-gap measure.

According to Robert King, “Short-term plans do not have to meet the same requirements as a health insurance plan sold on the Obamacare insurance exchanges. These requirements can include coverage of pre-existing conditions and certain essential health benefits such as prescription drugs. Consumers currently enrolled in short-term plans will be grandfathered in under the old rules, according to a senior administration official granted anonymity to discuss the details of the Biden plan.”

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(Source: Politico, July 7th, 2023)

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