Biden Administration Proposes New Guidelines to Limit Short-Term Health Insurance Coverage and Protect Consumers from Junk Insurance

The Biden administration has unveiled new guidelines that aim to provide more comprehensive coverage for individuals who use short-term health insurance as they transition between different plans. Under the proposed rules, short-term health insurance coverage will be limited to four months and insurance providers will be required to clearly outline what is included and what is not covered in their policies.

This move aims to prevent consumers from being misled into purchasing “junk insurance” that may not provide adequate coverage for their health needs. Currently, around 1.9 million Americans are enrolled in short-term health insurance plans, and these new rules will ensure that they have access to more transparent and comprehensive coverage. Despite the changes, individuals currently enrolled in short-term plans will still be able to renew their policies according to the terms of their existing plans.

Overall, the Biden administration’s proposed rules seek 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.