Washington D.C. – The Biden administration recently announced plans to revise short-term health insurance policies, a reversal of a key aspect of former President Donald Trump’s healthcare agenda.
Under the newly finalized rule, short-term health insurance plans will now be limited to three months with an option for a one-month renewal. These plans, known for their lower monthly premiums but limited coverage, previously allowed consumers to remain on them for up to three years.
Critics of short-term plans, including the Biden administration, refer to them as “junk insurance,” warning that they leave consumers vulnerable to high out-of-pocket expenses and inadequate coverage for existing medical conditions. The new rule aims to protect consumers from being misled into purchasing subpar health insurance.
Short-term plans differ significantly from Affordable Care Act plans, as they do not offer the same level of coverage for essential services like emergency, maternity, and mental health care. Unlike short-term plans, ACA plans cannot deny coverage based on pre-existing health conditions.
Effective June 17th, the Biden administration’s rule reinstates restrictions similar to those under the Obama administration, limiting the sale of short-term plans to 90-day periods to bridge the gap between more comprehensive coverage options.
Advocates for short-term plans argue that they offer more affordable choices for healthier individuals seeking health insurance. However, critics of the new rule, such as former White House advisor Brian Blase, fear it may limit options for middle-class Americans who rely on short-term plans and could potentially increase the number of uninsured individuals.
In addition to addressing short-term health insurance policies, President Biden and Senator Bernie Sanders have joined forces to tackle prescription drug costs for older Americans. Biden’s Inflation Reduction Act aims to lower drug prices by allowing Medicare to negotiate prices, capping insulin costs for Medicare enrollees, and limiting out-of-pocket spending on certain medications.
Overall, the Biden administration’s efforts signal a shift towards strengthening healthcare access and affordability for Americans, focusing on protecting consumers from inadequate health insurance coverage while working to reduce prescription drug costs.