The Biden administration wants to crack down on short-term health insurance plans, which it says can leave patients saddled with hefty medical bills
The proposed rule, announced Friday as part of a series of actions aimed at lowering health care costs, would limit the duration of these controversial plans to three months with the option of a one-month extension. It would also require that plans provide consumers with clear explanations of their benefits, which are typically less comprehensive than other policies.
It makes clear that federal law bars health insurers and hospitals from entering into contracts with each other but then trying to use creative loopholes to claim the providers are not technically in-network. The health care services rendered by these providers are either out-of-network and subject to existing surprise billing protections or they are in-network and subject to Obamacare’s annual limits on out-of-pocket payments, the administration said.
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