Affordable short-term healthcare plans can flourish thanks to Trump

Affordable short-term healthcare plans can flourish thanks to Trump

Millions of people will continue to have access to affordable short-term health plans, thanks to a new ruling from the U.S. District Court of Appeals for the District of Columbia.

A three-judge panel of the court upheld by a 2-1 margin a Trump administration rule extending the maximum duration of a short-term plan to just under a year. Insurers can also renew the plans for up to three years.

Short-term plans are appealing because they’re so affordable. Unlike those for sale on the exchanges, they’re not required to cover the 10 “essential” benefits mandated by Obamacare that not every person may want or need, such as substance abuse treatment. Short-term plans also do not have to accept all comers. So they can be a cheap option for people without preexisting conditions who are facing a gap in health coverage.

To take just one example, the premium for a short-term plan for a 30-year-old nonsmoking man in Fulton County, Georgia, can run about 46% less than the premium for an exchange plan with comparable benefits.

Millions of people will continue to have access to affordable short-term health plans, thanks to a new ruling from the U.S. District Court of Appeals for the District of Columbia.

A three-judge panel of the court upheld by a 2-1 margin a Trump administration rule extending the maximum duration of a short-term plan to just under a year. Insurers can also renew the plans for up to three years.

Short-term plans are appealing because they’re so affordable. Unlike those for sale on the exchanges, they’re not required to cover the 10 “essential” benefits mandated by Obamacare that not every person may want or need, such as substance abuse treatment. Short-term plans also do not have to accept all comers. So they can be a cheap option for people without preexisting conditions who are facing a gap in health coverage.

To take just one example, the premium for a short-term plan for a 30-year-old nonsmoking man in Fulton County, Georgia, can run about 46% less than the premium for an exchange plan with comparable benefits.

Read More

Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.