On March 28th, 2024, the Biden-Harris Administration announced that they would be taking steps to better regulate short-term medical plans. If you have a short-term medical plan or expect to enroll in one in the future, here’s what you need to know about the new regulations.
What are short-term medical plans?
Short-term medical plans are healthcare plans that provide only temporary coverage. Because they operate on shorter terms, they don’t have to adhere to Affordable Care Act standards — which is the primary reason for the new regulations.
Why they’re a problem
Without the need to adhere to Affordable Care Act standards, short-term medical plans are wildly unregulated. According to the White House, many plans are considered “junk insurance.” And many times, they leave people with thousands of dollars’ worth of medical bills. In many cases, the insurance companies claim that individuals had preexisting conditions that aren’t covered.
The Biden-Harris Administration wants to prevent more people from falling victim to these “junk insurance” policies by implementing new regulations.
Updates from the Biden-Harris Administration
There are two new changes to short-term medical plans:
- “Short-term” plans must truly be short term – Under the new regulations, short-term medical plans are limited to a maximum of three months, with a renewal maximum of four months. Previously, you could have a short-term plan for up to three years. The goal is to prevent people from using short-term plans as permanent insurance that leave them with little to no coverage.
- Plans must clearly disclose limits – Insurance plans will now have to clearly provide customers with disclaimers that explain the limits of the coverage.
Hopefully, these new regulations will prevent people from signing up for these short-term medical plans that provide limited coverage as their primary insurance.
Find the right coverage for your needs
Short-term medical plans should be a band-aid, not a permanent fix. If you need help finding a major medical plan that is regulated by the Affordable Care Act, contact the health insurance experts at Health Benefits Associates.
There are two times that you can enroll in a new comprehensive medical plan: during open enrollment or when you experience a qualifying life event (QLE). The agents at Health Benefits Associates can help you find the perfect plan to suit your needs. Contact us today by calling 775-828-1216 to schedule an appoint to discuss your options.
