A federal judge ruled July 19 that the Trump administration's expansion of short-term health plans does not undercut the ACA, The Wall Street Journal reports.
Short-term health plans previously were capped at 90 days. Under the Trump administration rule, which went into effect Oct. 2, short-term plans can last up to a year, with the option to extend coverage for a total of three years.
Short-term plans are typically cheaper than traditional health plans. However, they often cover fewer benefits and can deny people with pre-existing conditions. Proponents of the plans say they provide more low-cost insurance options. Opponents say short-term plans drive up costs for older, sicker Americans because they draw younger, healthier people out of the risk pool.
U.S. District Judge Richard Leon dismissed the lawsuit claiming the expansion of such plans destabilizes the ACA, according to The Wall Street Journal. The Association for Community Affiliated Plans, which filed the lawsuit, plans to appeal the ruling, according to the report.
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