Those are the plans that offer temporary coverage such as when you’re between plans or signing up outside of enrollment periods.
The new federal rule will limit the sale of new short-term insurance plans to three months, and they can only be renewed for a maximum of four months total.
Previously, these plans could be renewed for up to three years under the former Donald Trump Administration.
The rule will also require companies to provide patients with clear explanations of their benefits.
“When you buy health insurance, it should actually be health insurance,” said Jon Donenberg, Deputy Director of the National Economic Council. “The current practice of offering low-quality insurance that people pay into but doesn’t really give you coverage when you need it is really a bait and switch.”
However, conservative critics believe these new limits may cause some insurance companies to cancel patient plans. The Washington News Bureau talked with Brian Blase, who runs the Paragon Health Institute, a conservative think tank.
He argues this rule will also limit competition for health plans.
“That’s a terrible rule…. It is making coverage worse,” said Blase, President of Paragon Health Institute. “There’s no winners, it’s all losers. It is about taking away coverage from people and benefiting insurers that are just offering ACA plans.”
Currently, temporary health plans aren’t available at all in 14 states and in Washington D.C.
Get updates delivered to you daily. Free and customizable.
Welcome to NewsBreak, an open platform where diverse perspectives converge. Most of our content comes from established publications and journalists, as well as from our extensive network of tens of thousands of creators who contribute to our platform. We empower individuals to share insightful viewpoints through short posts and comments. It’s essential to note our commitment to transparency: our Terms of Use acknowledge that our services may not always be error-free, and our Community Standards emphasize our discretion in enforcing policies. We strive to foster a dynamic environment for free expression and robust discourse through safety guardrails of human and AI moderation. Join us in shaping the news narrative together.
Comments / 0