Congress codifies short-term health plans, potentially fragmenting insurance markets

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.
• Statutory definition may reduce administrative flexibility for regulators to tighten short-term plan rules without congressional action, locking in current underwriting and coverage standards.
• The bill does not address whether short-term plans must comply with ACA preventive-care, mental-health parity, or pre-existing-condition protections — ambiguity that may invite litigation or regulatory interpretation.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Short-term plans offer lower premiums and flexibility for some consumers, but typically exclude pre-existing conditions, mental health, and preventive care — shifting risk to sicker populations who must buy comprehensive coverage. Codifying the category may expand availability and lower costs for healthy, short-term users, but may also fragment the insurance market and leave vulnerable groups with fewer affordable comprehensive options.

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

Named in the bill

Public Health Service Act, Section 2791(b), health insurance issuers, short-term limited duration insurance

Where it stands

1 cosponsor: 1 Republicans.

• Mar 25, 2026 — Introduced · Congress.gov: “Introduced in House”
• Mar 25, 2026 — Referred to House Committee on Energy and Commerce · Congress.gov: “Referred to the House Committee on Energy and Commerce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 1 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $1,670,000 in lobbying spend. A filing names 33 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Glenn Grothman, the sponsor, reported $325,000 in PAC receipts in the 2026 cycle.

• Nfib (national Federation of Independent Business) — $1,670,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.