Court Backs President’s Expansion of Cheap Health Insurance Plans
WASHINGTON (AP) — A divided federal appeals court has upheld the Trump administration’s expansion of cheaper short-term health insurance plans as an alternative to the Affordable Care Act’s costlier comprehensive insurance.
The U.S. Court of Appeals for the District of Columbia Circuit said in a 2-1 decision on Friday that the administration had the legal authority to increase the duration of the health plans from three to 12 months, with the option of renewing them for 36 months.
The plans are derided by critics as “junk insurance” and do not have to cover people with preexisting conditions or provide basic benefits like prescription drugs.
An insurer group said it would appeal.