The Biden administration’s ruling limits short-term, limited-duration insurance (STLDI) plans to a maximum of four months, aiming to direct more people toward ACA-compliant plans. The administration believes this will ensure consumers have access to coverage that includes essential health benefits and protections for pre-existing conditions.

However, STLDI plans still serve an important role for those who need flexible, temporary coverage or a cost-effective solution outside of open enrollment periods. The new changes may affect how consumers use these plans, but they remain a valuable option for certain situations.
Read more at https://www.healthinsurance.org/blog/finalized-federal-rule-reduces-total-duration-of-short-term-health-plans-to-4-months/