The Biden administration has recently proposed new rules aimed at ensuring comprehensive coverage for individuals with preexisting health conditions. Under the proposed changes, short-term health insurance companies will no longer be able to deny coverage or exploit loopholes in the Affordable Care Act.
Currently, approximately 1.9 million Americans are enrolled in short-term health insurance, which is designed to provide temporary coverage between different insurance plans. However, critics argue that these short-term plans do not offer comprehensive coverage and do not comply with important ACA protections, such as covering preexisting conditions.
White House domestic policy adviser Neera Tanden has been a vocal critic of these short-term plans, calling them “junk insurance.” The new rules aim to provide greater transparency and protection for consumers by limiting the duration of short-term plans to four months and requiring insurers to clearly outline what is included and excluded in their plans.
Despite the new rules, individuals currently enrolled in short-term plans will still be able to renew their coverage according to the terms of their existing plans. The changes are expected to take effect in 60 days, providing more clarity and consumer protections for those utilizing short-term health insurance.
The Biden administration’s proposal is an important step towards ensuring that all Americans have access to comprehensive healthcare coverage, regardless of their pre-existing health conditions or financial circumstances. By limiting the duration of short-term plans and requiring insurers to clearly outline what is included and excluded in their plans, the new rules will provide greater transparency and protection for consumers.
