OKLAHOMA CITY – Oklahomans will have more flexibility and choices in health insurance after the Trump administration delivered on a promise. The Departments of Health and Human Services, Labor and the Treasury issued a final rule allowing the sale and renewal of short-term, limited-duration plans.
“President Trump is delivering on his promise to bring down the cost of health insurance for Americans,” Oklahoma Insurance Commissioner John D. Doak said. “We believe building a strong insurance market requires giving people as many affordable options as possible, not just Washington-dictated plans. Short-term, limited-duration insurance is another step in the right direction.”
Short-term, limited-duration insurance could be 50 to 80 percent cheaper than Affordable Care Act (ACA) plans, and the coverage is not controlled by expensive ACA regulations. It can provide coverage for people transitioning between different insurance options, such as an individual who is between jobs, or a student taking time off from school, as well as for middle-class families without access to subsidized ACA plans. Insurers will be able to let consumers renew these plans for up to 36 months, and consumers can buy separate renewability protection to lock in low rates.
The short-term, limited duration plans can also be a good option for those who have been priced out of the ACA market, where rates have more than doubled since the law was implemented, or those who don’t have an offer of employer-sponsored coverage. Experts expect 2 million Americans or more may buy them, many of whom were previously uninsured.