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The Biden administration has recently implemented a rule that puts limitations on the sale of short-term health insurance plans, reinstating restrictions that were established during the Obama era. This rule is similar to one put in place by the Trump administration, which was later challenged in court.

Short-term health insurance plans are designed to provide coverage during short gaps in more comprehensive insurance coverage. These plans do not have the same coverage requirements as traditional plans sold through the Affordable Care Act’s marketplaces. During Trump’s presidency, the maximum coverage period for these plans was extended, leading to criticism and legal challenges.

The new rule, released on Thursday, reverses this trend and reverts back to the limitations on “short-term limited-duration insurance” plans that were established during the Obama era. Critics of these restrictions were unsuccessful in challenging them in court under the Trump administration. However, with the Biden administration now implementing a similar rule, there is potential for a legal challenge against this new restriction as well. It remains to be seen how this rule will impact the availability and affordability of short-term health insurance plans for consumers.

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