In response to an October executive order by President Donald Trump, HHS proposed regulatory changes Tuesday that would extend the availability of short-term insurance plans.
The new rule would extend the maximum duration of short-term plans — which are not required to cover all of the ACA's essential health benefits — from just under three months to 364 days. HHS Secretary Alex Azar said this change will create more affordable coverage options.
"Americans need more choices in health insurance so they can find coverage that meets their needs," Mr. Azar said. "The status quo is failing too many Americans who face skyrocketing costs and fewer and fewer choices. The Trump administration is taking action so individuals and families have access to quality, affordable healthcare that works for them."
Individuals between jobs, those who find ACA plans too expensive or people whose providers are out-of-network under ACA plans could potentially be interested in these newly extended short-term plans, according to an HHS fact sheet.
"In a market that is experiencing double-digit rate increases, allowing short-term, limited-duration insurance to cover longer periods gives Americans options and could be the difference between someone getting coverage or going without coverage at all," CMS Administrator Seema Verma said.