Under a proposed rule by the Trump administration released on Tuesday, insurers will again be able to sell short-term health insurance good for up to 12 months. This rule would allow short-term plans to add more choices to the market at a lower cost and could offer broader provider networks than ACA plans in rural areas.
Health and Human Services Secretary Alex Azar said, “We want to open up affordable alternatives to unaffordable Affordable Care Act policies.”
Here are some talking points regarding the rule:
- 60 days to comment on the proposed rule before changes are made to the current rules
- If approved, insurers may be able to sell short-term health insurance for up to 12 months
- Comments also being sought to extend beyond 12 months and if there are ways to guarantee renewability of the plans
- No changes to requirements for STM plans – subject to pre-ex and not held to ACA requirements/not ACA compliant, med questionnaire required, etc.