The Department of Labor has released a proposed rule that would increase the availability of short-term, limited duration insurance plans for consumers.

Short-term, limited duration plans often are used as a stop-gap measure for people who are between jobs or need access to temporary coverage.

The proposal extends to one year the maximum length of short-term, limited duration plans — up from three months, as mandated by the Affordable Care Act (ACA).

The proposed rule also modifies notice requirements for consumers. With the repeal of the ACA’s individual mandate, insurers no longer will be required to let consumers know that their plan might result in a tax penalty.

Contact Director of Policy Erin O’Malley at eomalley@essentialhospitals.org or 202.585.0127 with questions.