Democrats have long wanted Biden to go after “junk insurance.”
Short-term plans do not have to meet the same requirements as a health insurance plan sold on the Obamacare insurance exchanges. | Lindsey Wasson/AP PhotoPresident Joe Biden wants skimpy, short-term health coverage to last no more than four months, reversing a Trump-era regulation.
The Trump-era rule enabled these types of plans to last up to a year and be renewed for up to three years. A 2016 rule under the Obama presidency limited the short-term plans to three months. The rule does not limit the sale of short-term plans during Obamacare’s open enrollment as some Democratic lawmakers had hoped.
The guidance said that the move is “not allowed under federal law: health care services provided by these providers are either out-of-network and subject to the surprise billing protections, or they are in-network,” the fact sheet said.
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