In a move aimed at reshaping the health insurance landscape, the Biden administration has implemented stringent regulations on short-term health plans. These plans, often criticized as "junk plans," have long been contentious due to their cheaper premiums and limited coverage options.

Under the new rules, short-term plans are now restricted to a maximum duration of three months, with a one-month extension available. This marks a significant departure from the previous regulations enacted during the Trump administration, which allowed these plans to extend up to three years.

Why employers and employees should care

The implications of these regulations extend far beyond policy. Understanding the impact of these changes is crucial for both employers and employees. With a significant portion of Americans obtaining insurance through their employers, any alterations in the health care landscape ripple through the workforce.