The Biden administration announced Thursday that it has finalized new regulations that will restrict the availability of short-term health insurance plans that are not compliant with the Affordable Care Act, giving consumers more access to lower-cost, higher-quality health insurance. The Trump administration's move to make it possible was reversed. schedule.
Under the new rules, short-term plans can only last for 90 days, with consumers able to extend by one month.
In 2018, the Trump administration issued a rule that would allow plans to last just under a year, with the option to renew for up to three years in total. Previously, under Obama-era policy, programs could not last more than three months.
These plans often have lower premiums than plans found in the Affordable Care Act market and are not required to cover people with pre-existing conditions. It also frees them from health law requirements that plans provide minimum benefits, such as prescription drug coverage and maternity care.
Democrats have derided so-called short-term, limited-duration plans as “junk” insurance, and Obama-era policies prevent healthy consumers from using the options to circumvent the Affordable Care Act marketplace. The aim was to leave a pool of more seriously ill patients. Number of customers enrolled in comprehensive plans offered under the Health Act.
The White House launched the new rules as a way to strengthen the market. In a briefing with reporters Wednesday, Neera Tanden, President Biden's domestic policy adviser, said 45 million Americans now have insurance coverage through the Affordable Care Act's marketplaces and Medicaid expansion. Stated. More than 20 million people signed up for a Marketplace plan during the latest open enrollment period.
“President Biden is not taking his foot off the gas,” Tanden said.
Supporters of short-term plans say the cheaper options are better suited for workers who move from job to job or who can't afford a marketplace plan. Alex M. Azar II, who served as Secretary of Health and Human Services under President Donald J. We can provide that.” ”
But critics of the plan say insurers could mislead consumers who buy insurance, including those who may qualify for free coverage through the Affordable Care Act's marketplaces. warns. After the Trump administration issued the rule in 2018, some states moved to restrict plan sales on their own. Democratic lawmakers have called on the Biden administration to repeal the regulation, and the administration released proposed rules last summer to do so.
The White House announced Thursday that a man in Montana was diagnosed with pre-existing cancer and had medical bills of more than $40,000, and a woman in Pennsylvania received a bill of about $20,000 after undergoing amputation surgery. I gave an example. Her plan won't cover it.
The new regulations also require insurers to provide disclaimers explaining what short-term plans cover.