Federal District Court Upholds Short-Term Plan Rule

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On Friday, July 19, federal District Court Judge Richard Leon sided with the Trump Administration in upholding the final rule that allows for the expansion of short-term health insurance plans. While the Obama Administration restricted the duration of short-term plans to three months without the option to renew, the Trump Administration’s final rule authorized these plans to last for up to 12 months with the option to renew for up to 36 months, defeating the purpose of “short term.” Importantly, these plans are not required to comply with the Affordable Care Act’s market reforms, such as the prohibition on discriminating against people with pre-existing conditions and the requirement to cover all essential health benefits, which can place consumers at risk for unexpected medical costs and unanticipated gaps in coverage for essential services. The plaintiffs are expected to appeal this decision to the D.C. Court of Appeals. Health Affairs published a comprehensive review of this case, which you can read here.

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