Biden Administration Reverses Trump-era Expansion of Short-Term Health Plans

HHS, the Treasury Department and the Department of Labor issued proposed rules on Friday that clamp down on short-term limited duration health plans. If finalized, short-term health plans would last for three months and can only be renewed for one more month.

The Trump-era rule enabled these types of plans to last up to a year and be renewed for up to three years.

Short-term plans do not have to meet the same requirements as a health insurance plan sold on the Obamacare insurance exchanges. These requirements can include coverage of pre-existing conditions and certain essential health benefits such as prescription drugs.

Consumers currently enrolled in short-term plans will be grandfathered in under the old rules, according to a senior administration official granted anonymity to discuss the details of the Biden plan.

The rule does not limit the sale of short-term plans during Obamacare’s open enrollment.