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August 30, 2018

On August 1, the Trump administration unveiled new regulations for short-term health plans, which are not subject to the ACA’s market reforms, like providing maternity and mental healthcare benefits or guaranteed coverage for people with pre-existing conditions.

The Council Perspective: Short-term health plans—previously established as three-month ‘stopgaps’ under the Obama administration—may now last up to 364 days for the initial contract term. The total duration of coverage, including the initial term and any renewals and/or extensions, may last up to 36 months. Some at the state and federal level argue that the plans are an affordable alternative to ACA coverage; however, states like Maryland, Vermont, Illinois and California are working to impede the new rules. State concern stems from short-term plans’ failure to cover particular conditions.