Biden Short-Term Health Plans Rule Creates Gaps in Coverage

Congress exempts "short- term limited duration insurance" (STLDI) from the Affordable Care Act (ACA or Obamacare) and all other federal health insurance regulations. As a result, STLDI provides affordable, comprehensive coverage to millions who are ineligible for other options or find them unaffordable. Consumers who miss Obamacare's enrollment periods can buy STLDI plans that cover them until the next enrollment period. Alternatively, they can renew their STLDI plans. In 2023, the Biden administration proposed to require both that insurers terminate all STLDI plans after four months and that insurers not offer renewals. The proposal would cause STLDI enrollees who fall ill to lose their coverage within four months, leaving them uninsured for up to 12 months. Estimates suggest it would cause 500,000 people to lose comprehensive health insurance. A similar requirement stripped health insurance from 61- year- old Jeanne Balvin between hospitalizations for diverticulitis, leaving her with $97,000 in medical bills.