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Study: Short-Term Health Plans 80 Percent Cheaper than Obamacare

A Foundation for Government Accountability (FGA) study released on Thursday found that short-term health plans could cost 80 percent less than Obamacare “bronze” plans.

In October 2018, thanks to executive orders signed by President Donald Trump, millions of Americans gained increased access to short-term health insurance, which serves as a less expensive option compared to plans purchased through the Affordable Care Act, also known as Obamacare.

Short-term plans allow for Americans to keep their plans for up to 364 days and to renew their plans for up to three years. Because short-term plans do not have to comply with many Obamacare insurance regulations, insurance companies can offer more customized and cheaper plans compared to the individual market.

One study from eHealth, an online health insurance broker that sells short-term plans, found that many short-term plans could cost 80 percent less than the lowest-cost Obamacare “bronze” plan and could even co