(Washington, D.C.) – Today, Congressman Glenn Grothman (R-WI) introduced the House companion to Senator Ted Cruz’s (R-TX) Competition and Openness in Markets to Promote Efficiency, Transparency, and Enhanced Affordability (COMPETE) Act, legislation to expand access to affordable health insurance options for families and small businesses.
The legislation would restore and expand access to Short-Term Limited Duration Insurance (STLDI) plans, allowing them to be offered for up to 12 months with guaranteed renewal options. These reforms aim to provide Americans with more flexibility and lower-cost alternatives to plans created under the Affordable Care Act (Obamacare).
“For years, families and small businesses have faced rising health insurance costs driven by federal mandates under Obamacare,” Grothman said. “The COMPETE Act restores commonsense flexibility by allowing Americans and employers to choose coverage that fits their needs and their budgets. By expanding access to short-term plans with guaranteed renewals, we can lower premiums, increase competition, and create more health care options for small businesses that are struggling to keep up with rising costs.”
“Obamacare reduced health insurance options and caused premiums to skyrocket. This legislation will promote more competition, provide consumers with more choices, and allow Americans to choose the healthcare coverage that fits their needs and budgets. I urge my colleagues to pass this legislation expeditiously.” – Senator Ted Cruz
Background Information
Rising health insurance costs have placed a growing burden on families and small business owners, with many Americans struggling to afford coverage that meets their needs. Short-Term Limited Duration Insurance (STLDI) plans exist outside the Affordable Care Act marketplace and provide more flexible, lower-cost options with faster access to coverage.
The COMPETE Act maintains the 2018 Trump Administration definition of STLDI plans and builds on it by allowing insurance companies to offer plans with renewal guarantees without requiring additional underwriting. Under the legislation, insurers would be permitted to:
- Offer Short-Term Limited Duration Insurance plans for up to 12 months
- Provide plans with guaranteed renewal options without additional underwriting
Supporting organizations for the legislation include The National Federation of Independent Business and The Foundation for Government Accountability.
