The Biden administration now wants to limit short-term health insurance plans to three or four months.  Depending on where you live, these policies can provide up to 36 months of coverage (38 states allow for short-term health insurance -- not all for 36 months) with the ability to renew annually.  The 12 states that prohibit these policies are generally Democrat-controlled states. (Low economic growth California, New York, New Jersey…)  These policies generally have a $2-million-dollar maximum benefit (less if the consumer selects less coverage), comprehensive coverage without the Affordable Care Act’s (ACA) essential benefits such as preventive care, prescription drug coverage, mental health coverage and pregnancy.  These policies also have a pre-existing conditions exclusion and can have deductibles as high as $20,000.  Short-term medical policies typically have a much more robust provider network than their ACA counterparts.  These policies are pure insurance that protect against an unexpected medical event.   

If you have a pre-existing condition such as heart disease, diabetes, joint disorder, etc., (a pre-existing condition), short-term health insurance is not for you.  Conceptually, short-term health insurance is similar to homeowners insurance. 

Short-term health insurance also costs a fraction of the cost of the ACA policies.  Between the savings of the high deductibles and the plan limitations, the savings can be as much as 75% compared to ACA policies. 

Short-term medical policies are a source of excellent coverage for those who are healthy and live a healthy lifestyle as these policies reward those covered by these policies with much lower premiums that allow the individual to save money toward his retirement, afford his mortgage, or pay for college.  As long as the consumer understands what he is purchasing, short-term health plans are not junk insurance. 

To be fair to the Biden administration (yes, it’s possible), their proposed rules regarding fixed indemnity insurance make sense.  There are individuals who believe they are getting comprehensive insurance when fixed indemnity policies provide inadequate coverage.  For example, one insurer provides a $500 emergency room benefit -- when the average emergency room claim is $2,300.  Some of these policies have a maximum lifetime benefit of $25,000.  Believe it or not, these policies should not go away.  However, there needs to be better disclosure so that the individual understands how inadequate the coverage provided by fixed indemnity plans is.  In this regard, the Biden administration is correct. 

Limiting short-term health insurance to three or four months is in effect a tax on the healthy.  Why the Biden administration continues to punish responsibility (for example, those with credit scores above 680 will pay an extra $40/month more on mortgages of $400,000 is nonsensical.  Why the American voter tolerates taxing responsibility is another question. 

We meekly allow big government to take away our ability to decide what is best for us. For those of us who think critically and understand risk/reward, we can decide what is the best way to insure ourselves and our families for health insurance. 

If you are currently represented by a vulnerable Democrat senator running for re-election in 2024 in a state that allows short-term health insurance, such as Joe Manchin, Tammy Baldwin, Jon Tester, Krysten Sinema, or Tim Kaine, call their office and let them know you oppose the Biden administration’s proposed changes to short-term health insurance. 

What else can you do?  Post a comment on the Federal Register (pg. 44) starting July 12 and let them know you are capable of deciding what is the best health insurance for yourself and your family.  Even if these proposed regulations don’t directly impact you, they impact someone that you care for.  Let the Federal Register know that you believe individuals can decide what is best for themselves without the heavy hand of government being involved.  Let the Federal Register know that you oppose these inflation-generating regulations. (do you think your painter, barber, beautician, electrician, plumber is going to absorb the quadrupling of their premiums?  No, the customer will.) 

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