New Biden Rules Seek to Limit Short-Term Health Insurance and Improve Consumer Protection

The White House introduces new regulations for short-term health insurance

The Biden administration has proposed new rules that seek to provide more comprehensive coverage for individuals who rely on short-term health insurance as they transition between different insurance plans. These rules aim to limit the duration of short-term health insurance coverage to four months, and require insurance providers offering temporary coverage to clearly explain what is included and what is not in their policies.

Currently, around 1.9 million Americans are enrolled in short-term health insurance plans, which often do not provide adequate coverage for preexisting conditions. The new rules would ensure that these individuals have access to more transparent and comprehensive coverage, despite the changes. Individuals currently enrolled in short-term plans will be able to renew their policies according to the terms of their existing plans.

The Biden administration’s proposal seeks to strengthen regulations around short-term health insurance and protect consumers from inadequate coverage. These rules are expected to take effect in 60 days and will provide more clarity and protection for individuals relying on short-term health insurance plans. Overall, the new rules aim to prevent individuals from being misled into purchasing “junk insurance” that may not provide adequate coverage for their health needs.

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