Biden Cracks Down , on ‘Junk Insurance Plans’.<br />On March 28, President Joe Biden announced that <br />a new rule will limit short-term health insurance <br />plans to three months, ABC News reports. .<br />The plans can now only be renewed for up to <br />four months instead of three years that were permitted under former President Donald Trump. .<br />The plans can now only be renewed for up to <br />four months instead of three years that were permitted under former President Donald Trump. .<br />Additionally, short-term plan providers must <br />clearly explain benefit limitations to consumers. .<br />The president really believes <br />the American people do not want <br />to be taken for suckers and junk insurance takes them for suckers, Neera Tanden, Biden's domestic policy adviser, via statement.<br />Short-term insurance is intended to temporarily serve as a safety net for periods of transition, <br />such as switching jobs or prior to receiving Medicare.<br />However, critics call these plans <br />"junk insurance" because they're often misleading as far as what they actually cover.<br />ABC News reports that the plans aren't required to cover those with preexisting conditions or pay for prescription drugs.<br />In 2018, Trump expanded short-term plans and referred to them as "much less expensive health care at a much lower price.".<br />Neera Tanden, Biden's domestic policy adviser, <br />said that Trump undermined the Affordable Care Act <br />(ACA) when he allowed insurance companies to <br />sell inadequate short-term plans.<br />Neera Tanden, Biden's domestic policy adviser, <br />said that Trump undermined the Affordable Care Act <br />(ACA) when he allowed insurance companies to <br />sell inadequate short-term plans.<br />The short-term plan expansion was <br />upheld by an appeals court in 2020
