The Trump Administration recently delivered another blow to the ACA by loosening the regulation of health insurance, issuing new rules to expand the availability of short term plans that offer limited benefits. This move will allow consumers to buy short term plans and keep that coverage as long as 3 years. Under the current Obama era rules, short term insurance cannot last more than 3 months. Under the new rule, the limit would be 364 days, however insurers would be allowed, but not required, to extend those policies. The maximum extension of these limited health plans will now be 36 months. These limited benefit plans can be an attractive option for healthier consumers who now pay high prices for major medical but are willing to take some risks in return for lower prices (estimated to be about 1/2 the cost of ACA Exchange rates).These new rules take affect in about two months. The new policies, which will be subject to state regulation, could be available before the end of 2018, however states will be allowed to restrict the sale of these limited benefit plans.
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