The Trump administration’s rule authorizing the expansion of short-term insurance plans is bad news for small businesses, small business employees and solo entrepreneurs in California that depend on the Affordable Care Act for quality, affordable insurance.

The rule says short-term insurance plans may last up to 364 days, and allows insurance companies to renew these plans for three years. It’s estimated 1.6 million people will purchase short-term plans by 2022, nearly all of whom would be younger and/or healthier. Without healthy people in the marketplace to offset the costs of care for older or sicker people, premiums will rise drastically.

Fortunately, California can remedy this situation. SB 910 would block short-term health policies, a move that would help keep costs down for California’s small firms. With time running out to pass legislation this year, let’s hope the legislature moves quickly.

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