Throw Away Junk Plans Act
Source: Congress.gov ·
248 words in original text
What This Bill Does
This bill changes the rules for short-term limited duration insurance (temporary health insurance plans that last for a short period of time). It removes an exemption that currently allows these plans to be sold without following certain health insurance rules. After a specific date, these temporary plans will have to follow the same requirements as other individual health insurance.
Who It Affects
People who buy short-term limited duration insurance plans for individual coverage (not through an employer). Insurance companies that sell these temporary plans.
Key Provisions
• Short-term limited duration insurance sold, issued or renewed after a certain date will no longer be exempt from following title XXVII of the Public Health Service Act (a federal law that sets health insurance standards). (Sec. 2)
What Changes
Short-term limited duration insurance plans will be treated like regular individual health insurance plans instead of having special exemption status. This change applies to plans issued, sold or renewed on or after a specific date mentioned in the bill.
Important Definitions
Short-term limited duration insurance: Temporary health insurance coverage that lasts for a short period of time.
Effective Date
Not specified in bill text. However, the bill text references plans issued, sold or renewed on or after April 1, 2023 as being subject to the new rules.
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
or a qualified attorney for legal matters.