Trump administration promoting low-cost health plans

Officials are promoting lower-cost, short-term health plans

Posted: Aug 1, 2018 7:12 AM

WASHINGTON (AP) - The Trump administration says it's clearing the way for health insurers to sell short-term plans as a low-cost alternative to pricey Obama-law policies for people struggling with high premiums.

But the policies for individuals have no guarantees of coverage for existing medical conditions and come with limited benefits.

Federal health officials say the plans can last for up to 12 months and may be renewed for up to 36 months. Details are expected Wednesday.

Short-term plans have been a niche product for people in life transitions, people switching jobs, people retiring before Medicare eligibility or people aging out of parental coverage.

Officials hope the plans will appeal to people ineligible for income-based subsidies under the Affordable Care Act. Critics say the plans undermine the health law.

(Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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