(NEWSnet) — The Biden administration announced new steps to protect consumers who buy short-term health insurance plans, which it calls "junk insurance" that can leave patients contending with big medical bills.

A new rule will limit these plans to just three months. And the plans can only be renewed for a maximum of four months, instead of up to the three years that were allowed under Biden’s predecessor, Republican Donald Trump.

The Biden administration is also requiring short-term plans to provide consumers with clear explanations of the limits of their benefits.

The White House said the rule is part of Biden’s efforts to reduce costs for consumers, which he has been promoting extensively as he seeks reelection in November.

Short-term insurance is meant to be temporary, providing a safety net for consumers as they transition between jobs, for example, or retire before they are eligible for Medicare.

Short-term plans were expanded in 2018 during the Trump administration as a cheaper alternative to the Affordable Care Act.

Follow NEWSnet on Facebook and X platform to get our headlines in your social feeds.

Copyright 2024 NEWSnet and The Associated Press. All rights reserved.