House bill seeks to overturn Biden rule on health insurance coverage

The bill would allow short-term plans to provide coverage for up to 36 months

House bill seeks to overturn Biden rule on health insurance coverage

Life & Health

By Josh Recamara

A bill has been introduced in the US House of Representatives aimed at overturning a rule implemented during the Biden administration that limits short-term, limited-duration health insurance overage and differentiates fixed indemnity insurance products from comprehensive health plans.

The bill seeks to improve access to more affordable, temporary health insurance plans by removing federal requirements, according to Republican Rep. Earl Carter of Georgia. Carter was joined by Republican lawmakers from Texas, Pennsylvania and Louisiana in introducing the bill, according to a report from BestWire.

If passed, the bill would allow short-term health insurance plans to provide coverage for up to 36 months, an increase from the four-month limit imposed by the Biden administration. The current rule also requires notifications to be provided on short-term and fixed indemnity insurance plans, outlining coverage details, amounts covered, and the differences between these plans and comprehensive health insurance.

“Fixed indemnity and short-term limited duration coverage are important products to consumers,” said J.P. Wieske, executive director of the Health Benefits Institute. “States have long regulated these products, and the Biden administration rules not only interfered with state regulation but would have eliminated consumer choice.”

The rules governing these types of coverage have shifted with the changing administrations over the past several years. In 2016, the Obama administration introduced new rules limiting short-term plan durations.

Under the Trump administration in 2018, the rules were amended to allow durations of up to 36 months with two renewal periods. In 2019, a group of healthcare advocates unsuccessfully sued to block the use of short-term plans.

The Biden administration started pushing to limit what it called "junk" coverage in the summer of 2023. The final rule was implemented in April 2024, according to Carter’s statement. The administration criticized these plans, claiming they often resembled comprehensive coverage but left consumers with uncovered bills or denials due to preexisting conditions.

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