In a significant move aimed at bolstering consumer protection and combating what it terms "junk insurance," the Biden administration announced measures Thursday to curtail the expansion of short-term health insurance plans implemented by his predecessor. These actions mark a departure from the previous administration's healthcare policy and are part of President Joe Biden's broader agenda to lower healthcare costs and enhance coverage for Americans.
The new rule limits the duration of new sales of short-term health insurance plans to just three months, with the option of renewal for a maximum of four months in total. This stands in sharp contrast to the policy under former President Donald Trump, which extended the duration of these plans to nearly a year, with the possibility of renewal for up to 36 months.
