Biden Administration Limits 'Junk' Insurance Plan Duration

The new rule aims to protect consumers from misleading coverage and reinforce the Affordable Care Act.

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.