Short-term health plans have gained favor among some state health commissioners lately as a creative, even cheeky way to avoid the absurdly high costs of insurance while still complying with the Affordable Care Act — an end-run around the law since efforts to repeal it have stalled.
In line with its broader commitment to federalism, the Trump administration has given states more freedom to expand the availability of these plans. On August 1, it issued new rules that allow states to make the policies available for 12-month periods instead of the current limit of three months. Policyholders also would be able to renew them for additional years if state insurance commissioners follow the Trump administration's suggestion to expand availability. Some conservatives who oppose Obamacare are now encouraging the states to expand the plans because it seems like an admirable move in restoring free-market principles to health care.
