HHS' final rule on short-term health plans went into effect Oct. 2.
Here are three things to know:
1. While short-term plans used to have a three-month cap, Americans can now buy short-term health plans that offer coverage for a longer period of time. Coverage can now span less than a year, and extensions and renewals can last as long as three years, depending on what states decide.
2. The plans have lower price tags than traditional policies. The average monthly premium for short-term health plans was $124 in 2016, compared to $393 for unsubsidized individual market plans. The trade-off? Coverage is less extensive. Short-term health insurance plans are not required to comply with consumer protections established by the ACA, such as the requirement to cover essential health benefits and pre-existing conditions.
3. The Trump administration has said the rule will help increase Americans' health insurance options, especially for those facing high premiums and fewer plan options in the ACA individual market. However, consumer advocate organizations and some insurance groups have strongly opposed the rule.
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