New Short-Term Plans Offer Affordable Health Coverage

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Washington, D.C. — Today, more flexible Short-term Limited Duration Health Insurance Plans become available to millions of Americans who seek affordable health coverage. Short-term plans will help nearly two million uninsured individuals get affordable coverage, offering health insurance that will be 50 to 80 percent less expensive.

Since 2013, premiums have increased by 105 percent, pricing individuals out of the market. Short-term plans offer an innovative solution to the massive increase in health insurance premiums that Americans have experienced over the past decade, and for those in transition. These plans are now available in many states to be sold for up to one year, increasing them from the prior three-month maximum, offering more flexibility for consumers and giving states more opportunity for lower-cost health insurance. While short-term plans are not for everyone, they are great resources for:

  • The uninsured;
  • Recent graduates who no longer qualify for their parent’s plan;
  • Those between jobs;
  • Those with part-term or temporary work;
  • Those looking for a less expensive option than COBRA;
  • Those facing a waiting period before their next major medical insurance commences;
  • Those that are retired, but are not old enough yet for Medicare;
  • Or those that missed the open enrollment period.

Short-term plans only affect those who choose to purchase them. If individuals like their current insurance plans, they can keep them. The Foundation for Government Accountability applauds the Trump administration for giving states and consumers flexibility and choice in affordable health coverage with short-term plans.

“Health insurance has become unaffordable for millions of Americans, with premiums increasing each year and choices decreasing. Short-term plans offer the flexibility and affordability that consumers need, increasing coverage for two million individuals who are currently uninsured and ensuring that Americans are able to purchase the coverage that works best for them,” said Tarren Bragdon, President and CEO of FGA.

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The Foundation for Government Accountability is a non-profit, multi-state think tank that specializes in health care, welfare, and work reform. To learn more, visit TheFGA.org.