Congressman Proposes Extending Short-Term Health Insurance Duration to 3 Years

Idaho Congressman Russ Fulcher has introduced the Removing Insurance Gaps for Health Treatment (RIGHT) Act of 2025 to extend the maximum duration of short-term limited-duration insurance (STLDI) plans from the current four months up to three years. These private insurance plans are designed to cover temporary gaps in health coverage and often come at a lower cost than plans available through state health insurance marketplaces, though they have fewer consumer protections and may exclude coverage for pre-existing conditions. STLDI plans are sold in 36 states, including Idaho, and current federal rules require plans to clearly inform consumers that these plans are not comprehensive coverage. The RIGHT Act aims to provide consumers with more flexibility and control over their healthcare choices by permitting short-term plans to last a full year with an option to renew for up to three years. However, insurers offering short-term plans can deny coverage or exclude services related to pre-existing conditions such as cancer or pregnancy, practices prohibited under the Affordable Care Act (ACA) for other insurance types. A 2025 analysis by the Kaiser Family Foundation (KFF) also found that premiums for women on low-cost short-term plans could be significantly higher than those for men. Federal enhancements to premium tax credits under the ACA, set to expire at the end of December 2024, currently help reduce insurance costs for many consumers, including in Idaho where average monthly premiums have been reduced by over $400. The expiration of these credits without Congressional renewal may result in higher health insurance costs, potentially increasing consumer demand for more affordable alternatives like STLDI plans. However, short-term plans remain less regulated and carry risks such as limited coverage and potential for misleading marketing, which have previously prompted warnings and regulatory actions from insurance departments, including Idaho's. This legislative proposal emerges amidst ongoing debates on healthcare affordability and consumer protection in the U.S. insurance market. Expanding the duration of short-term health plans could influence market dynamics by increasing competition and broadening available options but also raises concerns regarding regulatory oversight and consumer risk exposure. Professionals in health insurance, policy compliance, and regulatory fields should monitor the developments of the RIGHT Act and its potential impact on insurance coverage patterns and market stability.