The Trump administration moved Wednesday to expand health insurance options and affordability for Americans, with a new rule allowing cheaper new and renewable health insurance plans that consumers can use for up to a year.
The Department of Health and Human Services, Labor Department, and Treasury Department released the final rule that allows consumers to buy “short-term, limited duration” health insurance plans that are not subject to the Obamacare requirements. Consumers can have the plans for up to a year, instead of three months under the new rule.
The average monthly premium for an individual with a short-term plan in the fourth quarter of 2016 was $124, compared to $393 for an unsubsidized plan in the Obamacare exchange, according to HHS.
“They can be as much as 50-80 percent lower cost than the Affordable Care Act exchange plans,” Secretary of Health and Human Services Alex Azar told reporters Wednesday. “We believe this could provide relief for well over 1 million people.”