Affordable, quality health care. For everyone.

Short-Term Health Plans Are Cheaper but Cover Less

Consumers will have more options to buy cheaper, short-term health insurance under a new Trump administration rule, but there’s no guarantee the plans will cover preexisting conditions or provide benefits like coverage of prescription drugs. Administration officials said Wednesday the short-term plans will last up to 12 months and can be renewed for up to 36 months. With premiums about one-third the cost of comprehensive coverage, the option is geared to people who want an individual health insurance policy but make too much money to qualify for subsidies under the Affordable Care Act (ACA). “We see that it’s just unaffordable for so many people who are not getting subsidies and we’re trying to make additional options available,” said Health and Human Services Secretary Alex Azar. “These may be a good choice for individuals, but they may also not be the right choice for everybody.” The nonpartisan Congressional Budget Office estimates that roughly 6 million more people will eventually enroll in either an association plan or a short-term plan. The administration says it expects about 1.6 million people to pick a short-term plan when the plans are fully phased in. (Ricardo Alonso-Zaldivar, Associated Press)

Publication Details

Publication Date: August 6, 2018