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 October 19, 2018

Earlier in October, Senate Democrats failed to garner enough support for a resolution to overturn the expansion of short-term health plans. Notably, the Trump administration threatened to veto the resolution.

The Council Perspective: According to the Urban Institute, approximately four million people may choose to enroll in short-term health plans, which do not have to comply with protections laid out by the ACA. That would increase the total number of people without minimum essential coverage to 39.6 million. Critics say that extending the initial contract term to 364 days will not benefit short-term plan participants in the long run despite their draw as a more affordable, flexible coverage option. Insurers can refuse to offer certain policies to individuals with pre-existing conditions, and some benefits, such as maternity and mental healthcare, may not be covered. In addition, 24 states plan to thwart the expansion of short-term health plans by lessening the contract term.