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What short-term health insurance plans lack in coverage, they more than make up for in price. For the longest time, short-term medical coverage was reserved for the young and healthy, or anyone who wanted a cheap health insurance policy, that was until the Affordable Care Act kicked in.
Under President Obama, health insurance plans were held to a higher standard, and as a result, premiums spiked. Bare bones health insurance plans were still available, but unless you enrolled in an Obamacare approved policy, you would be required to pay a health insurance penalty. However, all that changed on Wednesday when President Trump and his administration made short-term health coverage relevant again.
Short-Term Health Insurance Changes Under Trump
President Trump has never been a fan of the Affordable Care Act because he believed it eliminated competition, and competition is what drives prices down. Additionally Americans were forced to purchase health insurance, a product and service that was still run by the private sector, and to top it off, affordable health insurance options were no longer viable.
On Wednesday, in an effort to make health insurance great again, the Department of Health and Human Services, Department of Labor, and Department of Treasury all announced they were loosening the regulations on short-term health insurance plans.
Short-Term Plans Extended
Under the ACA, short-term medical insurance plans were limited to a duration of 3 months. These policies were only supposed to be used for people between coverage, not as a stable health insurance plan. However, under the new rules, these plans can be purchased for just about the full year.
Renewing Short-Term Plans For 3 Years
As mentioned before, short-term coverage was only intended to be used when an individual is between coverage, but that is about to change as well. While you weren’t able to renew your short-term plan in the past, under the new regulations you may be able to renew your plan for up to 3 years.
It’s safe to say that short-term plans have officially made a comeback under President Trump, along with Association Health Plans. It won’t be long until those who are looking for cheaper health insurance plans will be able to find them.