AUSTIN – A district court in Washington, D.C. on Friday delivered the Trump Administration a major victory in its attempt to allow consumers to improve access to affordable healthcare coverage through short-term plans. Rules issued by the Departments of Health and Human Services, Treasury, and Labor that went into effect in October 2018 allow consumers to obtain health insurance through a short-term insurance plan for up to three years.
Judge Richard Leon wrote that the “potential negative impact” from the expansion of short-term plans is “minimal, but its positive benefits are undeniable.” Attorney General Paxton defended short-term insurance and consumer flexibility in a similar case before the U.S. Court of Appeals for the D.C. Circuit.
“Obamacare established an individual insurance market that is simply too expensive for many Americans,” Attorney General Paxton said. “Allowing for short-term insurance gives consumers the freedom to choose health insurance that meets their needs at an affordable cost. Prohibiting consumers from purchasing this type of coverage forces Americans to risk incurring devastating healthcare costs and does nothing to increase access to healthcare. The decision is a major win for consumers and the rule of law alike.”
Attorney General Paxton’s brief can be viewed here.