The Biden administration has recently proposed new regulations that aim to improve the quality of short-term health insurance coverage for Americans. Under the proposed changes, insurers would be restricted from denying coverage for pre-existing conditions and exploiting loopholes in the Affordable Care Act (ACA).
The short-term health insurance market currently serves approximately 1.9 million individuals who are switching between different health plans. However, critics argue that these plans do not offer comprehensive coverage and do not comply with important ACA protections, such as coverage for pre-existing conditions.
Neera Tanden, White House domestic policy adviser, has criticized these short-term plans as “junk insurance.” She argues that they can mislead consumers into thinking they have full health insurance when their coverage is actually limited or does not cover certain health conditions. The new rules seek to provide greater transparency and consumer protection by limiting the duration of short-term plans and requiring insurers to clearly state what is included and excluded in their policies.
Although the new rules will take effect in 60 days, individuals currently enrolled in short-term plans will still be able to renew their coverage under the terms of their existing plans. Overall, these changes aim to improve the quality of short-term health insurance coverage and provide greater protection for consumers.