President Biden is looking to reinstate restrictions on short-term health plans, which he has referred to as "junk" insurance. Short-term plans have become popular due to their affordability and flexibility, offering lower premiums and deductibles compared to Obamacare plans. However, critics argue that these plans do not provide the same level of comprehensive coverage as Obamacare and can undermine the viability of the exchanges.
Under the Trump administration, short-term plans were allowed to last up to three years and were estimated to have reduced the uninsured population by up to 3.7 million people. These plans are cheaper because they are not required to comply with Obamacare's regulations, such as the ten essential health benefits mandate.
The proposed rule by the Biden administration would limit short-term plans to a maximum term of three months with a one-month renewal, similar to the rule in place during Biden's time as vice president under Obama. Critics argue that this is an example of government overreach and will rob Americans of affordable coverage.
Studies have shown that short-term plans do not harm the exchanges but instead encourage individual-market insurers to offer more affordable and appealing plans. States that allowed the sale of short-term plans experienced a drop in individual-market premiums, while states that restricted them saw an increase.
President Biden's decision to restrict short-term plans was met with criticism, with some arguing that he still has more to learn about healthcare. It remains to be seen how the proposed rule will be received during the public comment period, which runs until September 11.
In summary, the debate over short-term health plans continues, with proponents arguing for their affordability and flexibility, while critics express concerns about their coverage limitations and potential impact on the viability of Obamacare exchanges. The Biden administration's proposed rule aims to reinstate restrictions on these plans, sparking a discussion about government overreach and the potential consequences for those seeking affordable healthcare coverage.