Benefits and Compensation

Trump Administration Seeks to Expand Short-Term Health Insurance

The Departments of Health and Human Services (HHS), Labor, and the Treasury (the Departments) issued a proposed rule on February 20 seeking to expand the availability of short-term, limited-duration health insurance by allowing consumers to buy plans providing coverage for any period of less than 12 months, rather than the current maximum period of less than 3 months.health

Short-term, limited-duration insurance, which is not required to comply with federal requirements for individual health insurance coverage, is designed to provide temporary coverage for individuals transitioning between healthcare policies, such as an individual in between jobs, or a student taking a semester off from school.

This announcement builds on the President’s October 2017 Executive Order 13813, “Promoting Healthcare Choice and Competition Across the United States,” which directed the Departments to consider proposing regulations or revising guidance to expand the availability of short-term, limited-duration insurance and allow it to cover longer periods.

A fact sheet on the proposed rule can be found here and the link to the proposed rule can be found here.