The Biden administration has proposed new rules that would restrict short-term health insurance companies from denying coverage for preexisting conditions and exploiting loopholes in the Affordable Care Act. These rules aim to provide more comprehensive coverage for individuals who rely on short-term health insurance as they transition between different insurance plans.
Under the proposed rules, short-term health insurance coverage would be limited to four months. Insurance providers offering temporary health insurance would also be required to clearly explain what is included and what is not included in their coverage. This transparency aims to prevent consumers from being misled into purchasing “junk insurance” that may not provide adequate coverage for their health needs.
Currently, around 1.9 million Americans are enrolled in short-term health insurance plans. The new rules would ensure that these individuals have access to more transparent and comprehensive coverage. Despite the changes, individuals currently enrolled in short-term plans will be able to renew their policies according to the terms of their existing plans.
Overall, the new rules proposed by the Biden administration seek to strengthen regulations around short-term health insurance and protect consumers from inadequate coverage. These rules are expected to take effect in 60 days and will provide more clarity and protection for individuals relying on short-term health insurance plans.