States now have more power over health insurance plans. A big federal change lets states redefine “short-term” health coverage. This impacts many people across the country. The new rule takes effect on October 25, 2024.
This means your state can now set its own rules. States can make these plans much shorter. This move aims to protect people from less complete coverage.
New Federal Rule Changes Short-Term Health Plans
A new federal rule just came out. It gives states a big choice. They can now set new limits on short-term health insurance. This is a major shift in health policy.
The Biden Administration is behind this change. It rolls back an older rule. That rule allowed these plans to last for nearly three years. Now, the federal limit is much shorter.
The new federal rule caps these plans at just three months. You can also get a possible one-month extension. This means your short-term plan cannot run for very long. States can choose to make these terms even shorter.
This rule aims to help you avoid risky insurance. Many worry about what these plans do not cover. They are not like regular health insurance. Check out more details on these federal changes from the Centers for Medicare & Medicaid Services.
What Short-Term Insurance Means for Your Health
Short-term plans offer quick coverage. But they come with big downsides. They often do not cover pre-existing conditions. This means if you are already sick, they may not pay.
These plans also skip “essential health benefits.” This includes things like prescription drugs. Mental health care often gets left out too. Maternity care is also usually not covered.
You won’t get financial help with these plans. The Affordable Care Act (ACA) offers subsidies. Short-term plans do not qualify for this aid. So, you pay the full price yourself.
Many people buy these plans because they are cheaper. However, the true cost can be high. You might face huge bills if you get sick. These plans are not for long-term health needs. They are meant for a very brief gap in coverage.
States Face Important Choices on Health Coverage
Now, states have a big decision to make. They can set stricter rules. For example, Arkansas currently follows federal rules. The state has no specific law for these plans.
This means Arkansas can now choose its own path. The state can decide to limit plans even more. It could make them much shorter than the new federal limit. This would offer more protection to its citizens.
Stronger state rules would help people. They would stop people from buying plans that do not cover much. This makes sure you get good care when you need it.
This choice is important for your health and wallet. State leaders must weigh how to best protect you. The debate on state-specific rules is just starting. Watch for local updates in your state.
