Experts say you don’t want this 'horrible idea' Trump is selling

US President Donald Trump smiles prior to the Japan-US summit meeting at Akasaka Palace State Guest House in Tokyo, Japan, 28 October 2025. FRANCK ROBICHONPool via REUTERS

Predatory, short-term insurance plans are waiting in the wings to scoop up desperate Americans losing their insurance this year, but consultants say most people should steer clear of them.

Thanks to efforts by President Donald Trump and the Republican party, Obamacare health subsidies are set to expire this year, leaving millions of people with soaring insurance costs. The Trump administration is suggesting newly abandoned Americans enroll in “short-term” plans as an alternative to plans sold under Obamacare, but unlike most insurance, these plans are not required to cover preexisting conditions or even basic needs such as maternity care and mental health.

“Their coverage is so full of holes that five states have banned their sale, according to KFF, a nonpartisan health policy research group. Even some major insurers have questioned whether relying on the short-term plans is a good idea, warning that many consumers could mistake them for comprehensive coverage,” the Post reports.

Nearly half of the plans do not cover outpatient prescription drugs and 40 percent do not cover mental health services, according to KFF, unlike Obamacare-compliant plans. The Washington Post reports there is a reason the Biden administration referred to them as “junk” plans.

Arkansas industrial electronics salesman Robert Hays thought he’d purchased conventional medical insurance, as did retired Wyoming cafeteria worker Essie Nath and Key West chef Martin Liz. The Post reports Hays is now “facing bills of $116,000 for neck surgery required after tweaking his neck while lifting weights.” Nath, meanwhile, suffered heart failure and got bills amounting to $82,000. Liz is dealing with knee replacement bills of more than $100,000.

“These policies are a horrible idea,” said Ken Swindle, an Arkansas-based attorney for Hays. “People think they’re getting comprehensive medical coverage, but they’re not, and they often don’t realize that until it’s too late.”

Chicago-area national health insurance agent Andy Mided told the Post that he has been flooded with calls from Obamacare enrollees who are looking for a cheaper alternative.

“There’s been a huge influx of people asking me, ‘What do I do?’” he said. But now Republicans are using Obamacare subsidy money to pay for the tax cuts in Trump’s 2025 budget bill, so options are limited for many Americans.

Mided said the short-term plans are too risky for his clients. Given their gaps in coverage, he said, “I couldn’t sleep at night if I sold that to somebody.”

But insurance companies that sell the spotty plans are celebrating and preparing for new customers, according to the Post. Last month, UnitedHealth and its subsidiary, Golden Rule Insurance, announced new sales incentives to agents selling the short-term plans.

“This fall, we are celebrating ... with a high-impact incentive designed to reward your hustle,” the announcement said.

Read the Washington Post report at this link.

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