General Discussion

Unlike most insurance, these plans are not required to cover preexisting conditions or even basic needs such as maternity care and mental health. Their coverage is so full of holes that five states have banned their sale, according to KFF, a nonpartisan health policy research group. Even some major insurers have questioned whether relying on the short-term plans is a good idea, warning that many consumers could mistake them for comprehensive coverage. The Biden administration referred to them as “junk” plans. . . . In addition to the five states that have banned them — including California and New York — nine states have rules so prohibitive that no short-term plans are offered . . .

Short-term plans, which were previously limited to a duration of four months, were vastly expanded in 2018 by the Trump administration, which saw them as an alternative to ACA plans, which they opposed. To make the short-term plans more accessible, the Trump administration ruled that a short-term policy could last as long as three years.

. . . Incentivized by larger sales bonuses, brokers were using deceptive marketing materials to sell short-term policies, the report said.

Last year, debate erupted again when the Biden administration reversed the Trump rule and restored the four-month limit on the policies.

This year, though, the Trump administration announced it was again coming up with its own definition of “short-term” and would not prioritize enforcement of the Biden-era rule.