Overview

• The Biden administration has issued a final rule limiting the duration of short-term health insurance plans to three months, with a possible one-month extension, reversing a Trump-era policy.
• The new rule requires insurance providers to clearly explain the limitations of their coverage, addressing concerns that consumers were misled by these 'junk' plans.
• Critics argue the rollback will harm consumers by restricting access to more affordable coverage options and potentially increasing the number of uninsured.
• Supporters believe the move will protect consumers from being misled into purchasing inadequate coverage and strengthen the Affordable Care Act.
• The policy applies only to new plans, not existing ones, and is part of Biden's broader efforts to reduce healthcare costs and improve consumer protections.