Extending the length of short-term health plans is good for consumers


Short-term health insurance is sometimes scoffed at as “sham insurance.” But to those who turn to it in need, this kind of insurance offers vital protection from unexpected medical costs. The Trump administration’s plan to extend how long it lasts makes sense.

Short-term plans offer temporary coverage for many of the same things standard health plans do. They don’t, however, cover things like preventive care, maternity care, or pre-existing medical conditions. Short-term plans do not meet the coverage requirements of the Affordable Care Act (ACA), but they have long offered a meaningful measure of protection to people who need to fill a gap in health insurance coverage.

Short-term health insurance plans were once available for up to 11 months, or 364 days in many states. An Obama-era rule that took effect in 2017 limited short-term coverage to no more than 90 days at a time. The Trump administration has proposed a rule change that would reverse the 90-day limit and again allow short-term plans to be sold for “any period of less than 12 months.”

“Americans who find themselves between jobs or simply can’t afford coverage because prices are too high will be helped by President Trump’s Healthcare for All Executive Order,” said Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma. “In a market that is experiencing double-digit rate increases, allowing short-term, limited-duration insurance to cover longer periods gives Americans options and could be the difference between someone getting coverage or going without coverage at all.”

There are so many options for both employer health plans and plans for individuals and families. Let our team at RCB & Associates guide you to your perfect plan.

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