In reaction to the rising premium expenses under the Affordable Care Act, former President Donald Trump implemented a policy enabling struggling families and healthy individuals to maintain short-term insurance plans for up to three years, with the possibility of renewal for an additional year after the policy ends.
Trump’s policy allowed those with minimal health issues to have coverage in case of emergencies, a viable option for younger Americans and families priced out of ACA-approved plans by Obama’s disastrous health insurance legislation.
With American families struggling to make ends meet, the Biden administration has decided it’s the perfect time to kick people off their affordable short-term plans and force them to purchase policies they do not need and cannot afford.
Starting in September of 2024, Americans who rely on these short-term plans will be capped at only three months of coverage, with the option to renew for one month after the policy ends.
After that, they are on their own, and many will be cut off from having health insurance.
Jon Dodenberg of the White House National Economic Council alleges that the recent policy seeks to safeguard consumers by addressing what he calls “junk” health insurance. “They’re being told you can pay this incredibly low price and get good insurance, but it turns out it’s not good insurance. In fact, it’s not really insurance at all.”
However, Michael Cannon, an expert in health policy at the CATO Institute, warns that introducing these policies could lead to gaps in health insurance. This means that if someone on short-term insurance gets sick and reaches their four-month coverage limit outside of the Affordable Care Act enrollment period, they may not have any options for continued coverage. He explains that many short-term policies provide comprehensive plans.
Canon warns that many Americans will be uninsured after the new rule takes effect this fall. “The Biden administration is throwing sick people out of their health insurance and leaving them uninsured for up to 12 months,” Cannon said.
Short-term health insurance offers temporary medical coverage during transitions between health plans or outside enrollment periods, providing a safety net in emergencies. Designed to be cost-effective and flexible, these plans offer quick coverage, often within 24 hours of purchase, and online enrollment is available in minutes.
Coverage focuses on high-dollar medical expenses like hospital stays, emergency care, and surgeries but typically excludes preventive care, maternity, and pre-existing conditions.
Renewing short-term health insurance is a choice individuals make for various reasons. Unlike major medical plans, short-term insurance isn’t bound to open enrollment periods, allowing individuals to apply anytime. This is convenient for those missing the regular enrollment window.
Compared to long-term health insurance, short-term plans are often more cost-effective, offering basic coverage without the hefty premiums of comprehensive plans.
Short-term plans cater to specific health needs, particularly for young and healthy individuals. They prioritize emergencies over preventive care or pre-existing conditions. Moreover, individuals accepting higher out-of-pocket costs for lower premiums may favor short-term insurance, striking a balance between price and coverage.
But short-term health insurance isn’t without drawbacks. These plans offer limited coverage compared to comprehensive health insurance, primarily focusing on major medical benefits while often excluding preventive care, maternity services, and treatment for pre-existing conditions.
Moreover, short-term policies typically entail higher deductibles and out-of-pocket expenses, meaning individuals must pay more before insurance coverage begins. Additionally, short-term plans do not cover pre-existing conditions. This allows insurers to decide what to cover or exclude based on medical underwriting criteria, potentially leading to coverage denials.
Some short-term plans impose coverage caps, leaving individuals responsible for all costs beyond these limits. Furthermore, short-term insurance does not qualify for government subsidies like ACA-compliant plans, potentially leaving individuals without financial assistance to pay their premiums.
But Americans turn to these plans, fully aware of their limitations. For these individuals, emergency health insurance is better than none at all. They gamble that they will not need it for much more than a health emergency. Averaging only about $170 per month compared to the $600 to $1000 monthly premiums of “better” insurance plans, they remain the only viable option for many struggling Americans.
It’s estimated that more than 236,000 Americans rely on short-term insurance, although the number of enrollees remains uncertain because insurance carriers are not required to report enrollment data. For these people, it’s the only viable option available. Short-term plans benefit part-time workers, temporary employees, recent college graduates, and the self-employed without access to workplace health insurance.
Just when the horrors of Obamacare were beginning to fade, Biden begins a new attack on Americans – removing the option of affordable health insurance for thousands.
After all, Papa Biden knows best.
