Under New Rules, Cheaper 'Short-Term' Health Care Plans Now Last Up To 3 Years

NPR reports:

People who don't get insurance through their jobs will now be able to buy short-term policies that may be cheaper than Affordable Care Act coverage. These plans won't have to cover as many medical services and are exempt from covering people with pre-existing conditions.

The departments of Health and Human Services, Labor and Treasury announced new rules Wednesday that make it easier for consumers to replace ACA insurance with these short-term policies.

The policies were originally limited to three months, but they can now last up to a year, and be renewed to last as long as three years. The plans have been a priority of President Trump, who says he wants consumers to have access to cheaper health insurance.

Short-term plans don't have to meet the Affordable Care Act's consumer protection and coverage requirements, so many will not cover services such as mental health care or prescription drugs. And insurance companies can deny customers coverage on these plans if they have a pre-existing medical condition and charge people more if they are likely to need medical care.

"These policies are different from those offered on the exchange," said James Parker, a senior adviser for health reform at HHS, in a conference call with reporters. "We make no representation that it's equivalent coverage."

Expanding choice....