Ted Cruz Introduces Bill to Expand Short-Term Health Insurance Options

U.S. Senator Ted Cruz (R), joined by Sen. Ted Budd (R-NC), has introduced the Competition and Openness in Markets to Promote Efficiency, Transparency, and Enhanced Affordability (COMPETE) Act, legislation aimed at expanding access to short-term, limited-duration insurance (STLDI) plans.

The bill would amend the Public Health Service Act to extend the maximum duration of STLDI and create a renewal guarantee allowing consumers to keep these plans for longer periods.

Sen. Cruz argued that expanding short-term plans would provide relief for Americans facing high health-insurance premiums.

"Obamacare reduced health insurance options and caused premiums to skyrocket," he said. "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."

Sen. Budd shared similar concerns, framing the bill as a response to the rising costs of healthcare.

"Americans overwhelmingly agree that we need access to high-quality healthcare at a reasonable price," said Budd. "Healthcare costs have climbed to unsustainable rates because of bad polices, like Obamacare, that have propped up insurance companies at the cost of eliminating consumer choice.

The proposal has been endorsed by Americans for Prosperity, the Foundation for Government Accountability, and Heritage Action. Tarren Bragdon, President and CEO of the Foundation for Government Accountability, accused the former Biden Administration of removing short-term affordable healthcare and praised the legislation for giving Americans the freedom to choose.

"Senator Cruz's bill restores the freedom President Trump gave Americans to choose plans that actually work for them, not force them into ObamaCare's one-size-fits-all mess," said Bragson.

Supporters of STLDI often highlight its significantly lower premiums and rapid enrollment timelines.

After the Trump administration expanded these plans in 2018, the Kaiser Family Foundation estimated they were priced at roughly 54 percent less than comparable Affordable Care Act-compliant plans.

Cruz and Budd present the bill as a pathway to lower-cost alternatives for individuals who do not qualify for federal subsidies or prefer plans with fewer mandated benefits.