COMPETE Act
- Bill Number
- H.R. 8082
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Health
- Status
- Introduced
- Latest Action
- 2026-03-25: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-04-14T13:37:41Z
AI-Generated Summary
Purpose
The COMPETE Act aims to promote competition in health insurance markets by defining and facilitating access to short-term limited duration insurance (STLDI), which offers temporary, potentially lower-cost coverage options outside traditional comprehensive plans like those under the Affordable Care Act (ACA).
Key Provisions
- Adds a definition of STLDI to Section 2791(b) of the Public Health Service Act:
- Coverage provided through a contract with a health insurance issuer.
- Contract expires no more than 12 months after its original effective date.
- May include a renewal guarantee, allowing policyholders to purchase additional policies later at a premium that does not require new health underwriting (i.e., no reassessment of health status for pricing).
Significant Changes to Existing Law
- Inserts a statutory definition for STLDI into federal law, which previously lacked a fixed congressional definition and was shaped by executive regulations (e.g., past rules limited initial terms to 3-4 months, while others allowed up to 36 months).
- Codifies a 12-month maximum initial term with optional non-underwritten renewals, providing permanence beyond changeable agency rules.
Potential Impacts
- Citizens: Expands access to affordable, flexible short-term coverage for gaps in insurance (e.g., job transitions), but these plans often exclude pre-existing conditions and essential benefits.
- Health insurance issuers: Enables more STLDI product offerings, fostering market competition with ACA-compliant plans.
- Government agencies: Shifts regulatory burden from executive rulemaking (e.g., by HHS) to fixed statutory limits; minimal direct international effects.
- Overall, could lower premiums for some but increase uninsured risks if used as ACA alternatives.
Main Stakeholders Affected
- Consumers: Individuals seeking temporary or budget coverage.
- Health insurers: Companies offering STLDI vs. those focused on comprehensive plans.
- ACA marketplaces: Potential competition reducing enrollment in subsidized plans.
- Regulators: U.S. Department of Health and Human Services (HHS) and state insurance departments overseeing compliance.
Notable Legal, Constitutional, or Political Implications
- Legal: Establishes a clear federal floor for STLDI, preempting stricter state rules and reducing litigation over agency interpretations; aligns with federal preemption under the Public Health Service Act.
- Constitutional: No direct challenges noted; supports free market principles without infringing core rights.
- Political: Advances deregulation to boost competition, potentially divisive along partisan lines (e.g., favored by free-market advocates, critiqued for weakening consumer protections).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-03-25: Referred to the House Committee on Energy and Commerce.
- 2026-03-25: Introduced in House
- 2026-03-25: Introduced in House
Bill Versions
- Competition and Openness in Markets to Promote Efficiency, Transparency, and Enhanced affordability Act — issued 2026-03-25 — PDF (2 pages)