American healthcare is set to reach the needy with the help of technology. Benefits of telehealth are evident as patients get better healthcare facilities. Along with this progress, many plans are being introduced.

The Trump Administration has finalized the rule for short-term, limited duration plans. The availability of these plans will be extended from three months to one year. A major change in the proposed rule is that it will allow individuals to renew these plans for a maximum period of up to three years.

At present, the short-term plans cover a maximum period of three months and they cannot be renewed.

The annual renewal of coverage of up to 36 months is possible without reapplying or underwriting as mentioned by the Health & Human Services (HHS) officials. But, this doesn’t guarantee renewal of coverage from insurers.

HHS officials believe that these plans will attract people who are priced out of the Affordable Care Act market, who have been served under the ACA. They are the middle-class consumers who don’t have an access to employer insurance.

From 2019 when the rule goes into effect, over the next ten years 600,000 additional people will enroll in these plans as shown by the impact analysis.