The recent rule implemented by the Biden administration on restricting the sale of short-term health insurance plans is facing potential legal challenges, as it reinstates the restrictions that were loosened under President Trump in 2018. These short-term plans are designed to provide coverage during brief gaps in insurance and do not have the same coverage requirements as traditional plans offered through the Affordable Care Act’s marketplaces.
Critics of Trump’s expansion of the maximum coverage periods for these plans took legal action against the changes but were not successful in court. Now, with the Biden administration reverting back to the Obama-era restrictions, there is potential for similar legal challenges to arise. The debate over the regulation of short-term health insurance plans continues as administrations change and policies are reevaluated. It remains to be seen how these potential legal challenges will play out and if the new rule will stand up in court.
