Congress codifies short-term health plans, potentially fragmenting insurance markets
H.R. 8082 — COMPETE Act · Filed by Glenn Grothman (R-WI) · 1 cosponsor · Introduced Mar 25, 2026 · Referred to committee
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What it does
This bill amends federal health insurance law to define 'short-term limited duration insurance' as plans lasting no more than 12 months, with an optional renewal guarantee allowing policyholders to buy additional coverage later without new medical underwriting. The bill does not restrict or expand these plans — it codifies their existing regulatory definition into statute.
Why we flagged it
The bill's sole operative function is to insert a statutory definition of short-term limited duration insurance into the Public Health Service Act. It does not create, restrict, or mandate these plans — it codifies an existing regulatory category, potentially clarifying or legitimizing a product that has been subject to administrative interpretation and state-level variation.
What the text implies
- Codifying the definition in statute may preempt state-level restrictions on short-term plans, which have grown stricter in recent years as states sought to protect comprehensive-coverage markets.
- The 12-month cap and renewal-guarantee language may be read to permit indefinite renewal chains, effectively converting short-term plans into long-term products while retaining their lighter regulatory burden.
The full analysis lists 4 implications of this text.
Who stands to gain
health insurance issuers offering short-term plans; brokers and agents selling short-term coverage; employers seeking lower-cost temporary coverage options