Today, the Trump administration issued a proposed rule to extend the duration of short-term health plans. However, even if it becomes final, the federal rule will not affect New York because the state does not allow such short-term policies.
The proposed rule was issued in response to President Trump's October 12th Executive Order directing HHS, DOL and the Treasury to consider policies that would expand the availability of such coverage. The Administration stated that the proposed rule is intended to provide relief from high premiums and limited choices. The proposed rule would:
Because short-term plans do not have to include benefits required for Affordable Care Act (ACA)-compliant plans, they will be cheaper. If a significant number of healthier individuals opt for them (in states where they are allowed), ACA-compliant plans will be left with a disproportionate share of members with high health care costs, further driving up the costs of those plans.
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