In a move aimed at reshaping the health insurance landscape, the Biden administration has implemented stringent regulations on short-term health plans. These plans, often criticized as "junk plans," have long been contentious due to their cheaper premiums and limited coverage options.
Under the new rules, short-term plans are now restricted to a maximum duration of three months, with a one-month extension available. This marks a significant departure from the previous regulations enacted during the Trump administration, which allowed these plans to extend up to three years.
|Why employers and employees should care
The implications of these regulations extend far beyond policy. Understanding the impact of these changes is crucial for both employers and employees. With a significant portion of Americans obtaining insurance through their employers, any alterations in the health care landscape ripple through the workforce.
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