More Health Insurance Options Outside of Obamacare

Feb 21, 2018

In December, 2016 the Obama Administration issued what was thought to be the final definition and regulations regarding short-term, limited-duration health insurance. (here) These policies were originally designed for people between jobs or for individuals transitioning from one health insurance plan to another.

The plans do not contain all of the essential health benefits (EHB) and many of the regulations required in the Affordable Care Act (ACA).  They can, however, offer more health insurance choices and affordable major medical or catastrophic coverage for individuals. The Obama Administration set the limit for use of a short-term plan at three months.

Yesterday, the Trump Administration officially extended the use of these short term plans to one year. (here)

The argument against these plans is that they are not as comprehensive as ACA-mandated insurance. Yet it is all of the benefit mandates in ACA plans that make them expensive and very unattractive to young and healthy people. These short-term plans will actually allow more people to access health insurance that they can afford and use.

The Administration could extend the time duration of short-term plans indefinitely, and thereby give people more options in the health insurance marketplace.