New rules could create more options for employees
New rules from the Trump administration will expand the reach of short-term insurance plans, which could result in additional options for consumers, including employees.
The new rules extend the duration of short-term health plans from three months to 364 days, and would also allow the plans to be renewed. These regulations make short-term plans more like other types of insurance.
While these plans are generally cheaper than other types of coverage, they do not cover as many services as traditional health plans, such as preventive care or prescriptions.
Still, many anticipate that consumers looking for lower-cost alternatives may forgo comprehensive coverage and elect these plans, especially as the individual mandate penalty no longer applies next year.
Why does this matter to employers? In a few circumstances, employees could choose these new options instead of workplace options. Here are a few scenarios where this could apply.