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The bill increases transparency and limits how long people can stay on short-term health plans, reducing indefinite limited coverage, but it still risks leaving people with preexisting conditions without comprehensive protections and may incentivize insurers to cycle coverage, creating gaps and higher costs.
People enrolled in short-term health plans will have a clear limit on continuous coverage because the bill caps continuous enrollment in these plans at 3 years, reducing indefinite reliance on limited-benefit plans.
People buying short-term plans will get clearer contract terms because plans must state an explicit expiration date under 12 months from the original effective date.
People with preexisting conditions may lose comprehensive protections when short-term plans expire or after reaching the 3-year limit, increasing their risk of unaffordable or interrupted care.
Consumers (and potentially taxpayers) could face coverage gaps and higher costs if insurers design products to cycle coverage around the 3-year limit, effectively evading protections and creating instability.
Based on analysis of 2 sections of legislative text.
Creates a statutory definition limiting short-term limited duration insurance to contracts with initial expirations under 12 months and a total duration up to 3 years including renewals.
Introduced November 25, 2025 by Russell Fulcher · Last progress November 25, 2025
Adds a legal definition of “short-term limited duration insurance” to federal law, specifying that such a plan has an original contract expiration date of less than 12 months and a maximum total duration of no more than 3 years, including renewals or extensions. The change codifies how long short-term plans may run and where that definition appears in the U.S. code.