What did Biden’s new short-term insurance rule change?

Starting in September 2025, short-term medical plans are limited to 3 months with only a 1-month renewal, reducing their usefulness for long-term coverage.

Who will be most affected by this change?

Self-employed individuals, contractors, and those who relied on short-term medical plans may struggle to maintain continuous coverage.

What are my alternatives to short-term plans?

ACA Marketplace plans guarantee acceptance regardless of health conditions, while medically underwritten PPOs may offer lower costs if you’re healthy. Employer coverage is another option if available.

Robert Adams 5/26/24 Robert Adams 5/26/24

How Biden’s 2025 Short-Term Insurance Rule Changes Affect You

Biden’s new short-term insurance rule cuts plans to 3 months with only a 1-month renewal. Self-employed workers and contractors may be at risk—see ACA, PPO, and employer coverage alternatives with RKA.

What Changed in Biden’s Short-Term Insurance Rule? | RKA

Health Insurance Updates • Policy Change

What Changed in Biden’s Short-Term Insurance Rule?

Fast take: Starting in September 2025, new federal rules limit short-term medical plans to 3 months, with just a 1-month renewal. This change reduces flexibility and leaves many—especially self-employed workers—needing new solutions.

Why the new rules put many at risk

Providers like Golden Rule, National General, Everest, and Pivot Health have offered short-term plans as flexible, stopgap coverage. Under the new rule, these plans are much less viable. Many households will need to reassess coverage options before losing protection.

Your alternatives: Marketplace vs. underwritten plans

ACA Marketplace Plans

These plans guarantee acceptance regardless of pre-existing conditions. Subsidies may reduce premiums, but networks and deductibles can vary widely.

Medically Underwritten Plans

For healthy individuals, private PPOs may provide lower monthly costs and nationwide access. Underwriting applies, but these plans often mean lower out-of-pocket exposure compared to unsubsidized ACA coverage.

Employer Coverage

If you’re eligible through an employer, group plans remain strong options. However, adding dependents can drive up costs—so review carefully.

Secure your coverage today

The new rules significantly reduce the flexibility of short-term plans. Acting now ensures you avoid gaps in coverage and rising costs. At RKA Insurance Advisors, we specialize in navigating these changes and finding the right coverage in 32 states.

Quick FAQs

When does the new rule take effect?

It begins in September 2025, limiting short-term plans to 3 months with just 1 renewal month.

Can short-term plans still be useful?

Yes, but only as very temporary stopgap coverage. For most, a Marketplace or private PPO plan will be better long-term.

How can RKA help?

We’ll verify your doctors, compare plan types, and recommend the best option tailored to your needs before the rules take effect.

For education only; eligibility, availability, and pricing vary by carrier and state. Always review official plan documents.