Healthcare Freedom and Choice Act
Healthcare Freedom and Choice Act
Plain Language Summary
# Healthcare Freedom and Choice Act - Summary **What the bill does:** This bill would overturn a 2024 federal rule that restricts short-term health insurance plans. Currently, these plans can only last up to 3 months initially, with a maximum total coverage of 4 months (including renewals). If passed, the bill would eliminate these time limits, allowing short-term plans to be offered for longer periods. **Who it affects:** The bill impacts people shopping for health insurance, insurance companies offering short-term plans, and potentially healthcare costs. Short-term plans are typically cheaper but offer limited coverage compared to comprehensive insurance.
They are often used by people between jobs or waiting for employer coverage to begin. The rule being overturned was designed to prevent people from using these plans as a long-term alternative to full coverage under the Affordable Care Act. **Current status:** The bill was introduced by Rep. Buddy Carter (R-GA) and is currently in committee, meaning it has not yet been voted on by the full House. The bill is still in the early legislative stage with no indication of when or if it will advance further.
CRS Official Summary
Healthcare Freedom and Choice ActThis bill nullifies a rule regarding short-term, limited-duration health insurance plans. The rule was promulgated by the Internal Revenue Service, Employee Benefits Security Administration, and Department of Health and Human Services; is titled Short-Term, Limited-Duration Insurance and Independent, Noncoordinated Excepted Benefits Coverage; and was published April 3, 2024.Short-term, limited-duration health insurance plans are plans that may only offer coverage for a limited amount of time and are exempt from the market requirements of the Patient Protection and Affordable Care Act (e.g., coverage of individuals with preexisting conditions).The rule limits the length of the initial contract period for such a plan to no more than three months and, taking into account any renewals or extensions, the maximum coverage period to no more than four months. The rule also includes within the maximum renewal period limitation a new plan sold by the same issuer, or any issuer that is a member of the same controlled group, to the same policyholder within a 12-month period.Regulations in effect prior to the rule this bill nullifies permitted short-term, limited-duration health insurance plans with an initial contract period of fewer than 12 months and a maximum coverage period of up to 36 months, including renewals and extensions.
Latest Action
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Education and Workforce, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.