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Bill

S 3418

COMPETE Act

119th Congress Introduced by Ted Budd and 1 co-sponsor

Defines STLDI as short-term coverage up to 12 months that may renew without underwriting, aiming to boost affordable, temporary coverage options.

Introduced in Senate
0
WeVote Research Nonpartisan
Bill Summary · S 3418

Summary of S.3418 (119th Congress) – COMPETE Act

Purpose
- The COMPETE Act aims to promote competition, transparency, and affordability in health insurance markets. It introduces a statutory definition related to short-term limited duration insurance (STLDI) and clarifies how such plans may be used within the health coverage landscape.

Key Provisions

1) Short-Term Limited Duration Insurance (STLDI) Definition
- The bill adds a new subsection to Section 2791(b) of the Public Health Service Act to define STLDI.
- Definition elements:
- An STLDI plan is a health insurance contract issued by a health insurance issuer.
- The contract must have an expiration date not more than 12 months after the original effective date.
- The plan may include a renewal guarantee, allowing the policyholder to purchase another policy or policies after expiration.
- Renewals could occur for future periods, with the renewal premium not reflecting any additional underwriting that would otherwise adjust prices based on risk.

2) Operational Clarifications on STLDI
- The definition explicitly ensures STLDI plans can be renewed, but without underwriting (i.e., without adjusting premiums based on an updated health status or risk assessment at renewal).
- This structure appears to permit temporary coverage options for consumers who want shorter-term coverage or coverage gaps to be filled without long-term underwriting-based pricing.

Sponsors
- Senate Sponsors: Sen. Ted Cruz and Sen. Ted Budd (Co-sponsors).

Legislative Status and Process
- Introduced in the U.S. Senate on December 10, 2025.
- Referred to the Senate Committee on Health, Education, Labor, and Pensions (HELP) for consideration.
- Action history indicates it has not progressed beyond referral as of the provided record.

Potential Impact and Implications

  • Access and Affordability:

    • By clarifying and potentially expanding STLDI options, the bill could broaden short-term coverage choices for individuals seeking lower-cost plans or temporary coverage.
    • The prohibition or absence of underwriting at renewal could keep premiums stable for renewals, but may shift risk to other market segments or rely on market dynamics to set prices.

  • Market Competition:

    • The bill is framed around promoting competition in health insurance markets. Expanded STLDI use could alter the mix of plans sold, potentially affecting premiums and insurer behavior in broader markets.

  • Consumer Protections:

    • The definition emphasizes renewal without underwriting, which could influence consumer protections, issuer pricing practices, and availability of coverage for people with preexisting conditions during STLDI renewal periods.

  • Regulatory Considerations:

    • The act would amend the statutory framework for STLDI within the Public Health Service Act, requiring agencies to align policy guidance and regulatory implementation with this definition and its implications.

Notes and Limitations
- The bill, as introduced, provides a precise definitional change for STLDI and does not specify additional consumer protections, benefit mandates, or coverage standards beyond the renewal underwriting limitation.
- Full impact would depend on subsequent legislative text, regulatory guidance, and how insurers implement STLDI offerings in response to this definition.

If you’d like, I can add a comparison with current law on STLDI and outline potential industry responses or create a side-by-side with related health policy proposals.

Compiled from official sources — confirm details with the bill’s official record.

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