"That's what makes this case novel, first of its kind and really important", Abbe Gluck, a Yale University law professor and expert on Article II, told NBC.
Health and Human Services Secretary Alex Azar, and Centers for Medicare & Medicaid Services Administrator Seema Verma are also named as codefendants with the president in the 130-page suit.
"We make no representation that it's equivalent coverage", said Jim Parker, a senior adviser at HHS.
Four cities filed a federal lawsuit Thursday against the Trump administration, claiming the president is intentionally undermining the Affordable Care Act and violating a Constitutional duty to "faithfully execute" existing law. But that's because they are allowed to exclude those with pre-existing conditions and base rates on an applicant's medical history, unlike Obamacare plans. A recent study looked at short-term health plans sold in the Charlotte region and found that a lot of them didn't cover benefits for prescription drugs, mental health services, or substance use disorder treatment.
Since taking office in January of 2017, President Trump has let it be known that his plan is to undo the Affordable Care Act. "If there's ever going to be a violation of the "take care" clause, this is it". The IHC Group is an organization of insurance carriers headquartered in Stamford, Conn.
The new rules go into effect in 60 days, so expanded short-term policies could be available in October. They are suing to force the administration to restore the funding that was slashed for outreach and enrollment assistance, extend the 2019 open enrollment period, and steer people towards comprehensive ACA plans and away from skimpy short-term plans that do not cover pre-existing conditions.
Just over 14 million people are enrolled in ACA plans this year. They can include dollar limits on coverage.
People who don't get insurance through their jobs will now be able to buy short-term policies that may be cheaper than Affordable Care Act coverage.
HHS cited statistics from 2016 when the average short-term plan premium was $124 compared to $393 on the exchanges. A Kaiser Family Foundation survey of current plans found none that covered maternity, and many that did not cover prescription drugs or substance abuse treatment - required under the Obama law.
Short-term insurance has fewer benefits.
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The costs of the new plans will be set in the marketplace, but without ObamaCare's mandates they will be cheaper.
The Trump administration's new regulation expanding short-term health insurance plans contains what amounts to a legal life preserver in case a key feature is struck down by a court. Last month, the administration announced it was freezing payments that are part of an Obamacare program that protects insurers with sicker patients from financial losses.
The goal was to ensure that everyone has access to quality health coverage without discriminating against those who have pre-existing medical conditions. The tax bill approved past year by Congress stops this financial penalty as of 2019.
Adversaries of the plans are calling them "junk insurance".
A major insurer group is warning that the Trump administration's short-term health insurance plans could be harmful for consumers.
Senate Minority Leader Chuck Schumer of NY says Democrats will "do everything in our power" to stop the Trump administration's expansion of short-term health insurance plans.
Under the Obama administration, such plans were limited to three months' duration.
Federal health officials say the plans can last for up to 12 months and may be renewed for up to 36 months. That may not translate to broad consumer appeal among people who need an individual policy.
Twenty GOP state attorneys general and governors filed a lawsuit that brought the constitutionality of the ACA into question in February.