Return to the Latest

New Short-Term Health Plan Rule Expands Junk Insurance, Putting Young People at Risk

August 1, 2018
Contact: Paydon Miller
(202) 734-6543 |

New Short-Term Health Plan Rule Expands Junk Insurance, Putting Young People at Risk 

Washington, DC – Earlier today, the U.S. Department of the Treasury announced a new rule that would drastically expand the availability of short-term health plans, creating a parallel market of junk health insurance and raising premiums for comprehensive coverage. Short-term plans are exempt from the core consumer protections of the Affordable Care Act, allowing them to deny coverage to people with pre-existing conditions, impose lifetime or annual spending limits on care, and exclude coverage for essential health benefits like prescription drugs – all of which are forbidden under current law.

In response to today’s rule, Caitlin Morris, Policy Director for Young Invincibles, issued the following statement:

“In another act of sabotage of the Affordable Care Act, today’s announcement from the Trump Administration will put many young people’s health and finances in jeopardy. Young people want comprehensive, affordable health coverage that covers the services they need and use the most. But these junk plans aren’t required to cover essential health benefits like maternity care, prescriptions drugs, and birth control, or comply with the ACA’s consumer protections. Short-term plans aren’t a real replacement for the ACA’s comprehensive coverage options and will expose some young adults to high health care costs and significant gaps in coverage.

Young people, who are often purchasing insurance for the first time, deserve to know that their plan will cover their needs at a cost they can afford. With the Trump Administration slashing funding for enrollment assistance services and pushing young people to these junk plans, it’s as important as ever that young people understand their options and why these plans put them at risk. This new rule is further evidence that the Trump Administration doesn’t care about protecting young people or their ability to stay healthy.”