COMPETE Act

Key Points

• This bill changes the rules for short-term health insurance plans. It defines these plans as lasting up to 12 months, which is longer than some current federal regulations allow.
• The policy includes a renewal guarantee. This means if you get sick while you are covered, the insurance company cannot use your new illness as a reason to charge you more or deny you coverage when you sign up for another term.
• These plans are usually cheaper than standard health insurance because they do not have to follow all the rules of the Affordable Care Act. For example, they might not cover things like prescription drugs or maternity care.
• This would mostly affect people who buy their own insurance instead of getting it through work. It offers a lower-cost option for those who find regular plans too expensive, but it may provide less protection if they have a major medical emergency.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.