Throw Away Junk Plans Act

The Throw Away Junk Plans Act (HR 711) eliminates an exemption that allowed short-term health insurance plans to avoid complying with Affordable Care Act (ACA) requirements. Starting April 1, 2023, these short-term plans - often marketed as low-cost, limited-coverage options - must now meet the same standards as regular health insurance, including covering pre-existing conditions and essential health benefits. This directly affects individuals purchasing health coverage, particularly those who might have relied on these "junk plans" for temporary or cheaper options. The bill closes a loophole that previously permitted insurers to sell such plans without ACA compliance, though it does not impact existing short-term plans sold before the effective date.