Idaho Congressman Proposes Extending Short-Term Health Insurance Duration

Idaho Republican Congressman Russ Fulcher has proposed the Removing Insurance Gaps for Health Treatment (RIGHT) Act of 2025, aimed at expanding the duration of short-term, limited-duration health insurance (STLDI) plans from the current four months up to three years. STLDI plans are private insurance designed to cover temporary gaps in health coverage, often at lower premiums than Affordable Care Act (ACA) marketplace plans, but with fewer benefits and less consumer protection. These plans can deny coverage for pre-existing conditions, unlike ACA-compliant plans, and regulatory safeguards require clear consumer notifications about their limited coverage scope. Currently, STLDI plans are available in 36 states, including Idaho, typically offering coverage in three-month increments renewable up to four months. The RIGHT Act seeks to extend the maximum coverage term to a full year, with renewals up to three years, providing more flexibility and potentially lower-cost options for those facing insurance gaps. This proposed expansion comes alongside the pending expiration of enhanced ACA premium tax credits, which have notably lowered premiums in states like Idaho by over $400 monthly on average. While short-term plans generally cost less in raw premiums than the lowest-cost unsubsidized ACA Bronze plans, the availability of federal premium tax credits often equalizes or reduces marketplace plan costs. However, STLDI plans may discriminate based on gender and pre-existing conditions, leading to higher premiums and coverage exclusions. Idaho's Department of Insurance has addressed consumer protection concerns, issuing warnings against robocall scams and unauthorized insurers soliciting short-term plans. The RIGHT Act has been introduced amid broader health insurance market pressures caused by the potential expiration of subsidy enhancements. The proposed legislation's passage could affect the balance between affordability, coverage comprehensiveness, and regulatory consumer protections in health insurance markets, particularly in states where short-term plans are prevalent. Insurance professionals and policymakers will be monitoring regulatory developments and consumer impact as this legislation progresses.