U.S. Senators Ted Cruz (R-Texas) and Ted Budd (R-N.C.) have introduced the Competition and Openness in Markets to Promote Efficiency, Transparency, and Enhanced Affordability (COMPETE) Act. This proposed legislation seeks to amend the Public Health Service Act by extending the maximum duration of short-term, limited-duration insurance (STLDI). It also includes a provision that would allow consumers to renew these plans for longer periods.
Senator Cruz stated, “Obamacare reduced health insurance options and caused premiums to skyrocket. 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.”
Senator Budd commented, “Americans overwhelmingly agree that we need access to high-quality healthcare at a reasonable price. Healthcare costs have climbed to unsustainable rates because of bad policies, like Obamacare, that have propped up insurance companies at the cost of eliminating consumer choice. I am proud to be working with Senator Cruz to provide a common-sense solution for short-term health plans by enhancing access to lower premiums and transparently making healthcare more affordable and flexible for individuals and their families.”
The bill has received support from groups including Americans for Prosperity, Foundation for Government Accountability, and Heritage Action.
Tarren Bragdon, President and CEO of the Foundation for Government Accountability, said, “The Biden administration stripped away affordable short-term plans that gave families real health coverage at a fraction of the cost. 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. Instead of continuing to prop up a failing government system with heavy subsidies, this bill unleashes free markets and real competition to give families better, cheaper coverage options.”
Short-term limited-duration insurance is designed primarily as temporary coverage during transitions between other health plans. Supporters say it offers greater flexibility since individuals can select the amount of coverage they want without paying for services they may not use. After changes made in 2018 under President Trump’s administration allowed STLDI plans for longer periods, these policies were priced significantly lower than comparable Affordable Care Act (ACA)-compliant plans—approximately 54% less according to data from the Kaiser Family Foundation.
Advocates also argue that STLDI can help uninsured individuals by providing affordable alternatives when other insurance options are unavailable or too expensive. Unlike most individual market plans with limited enrollment windows or requirements based on life events, short-term plans can be purchased at any time with coverage often beginning within days.
Since its implementation in 2014, ACA benchmark plan premiums have increased sharply—129 percent for typical 50-year-old enrollees—compared with smaller increases in employer-sponsored insurance premiums or general consumer prices.
Senator Cruz has a history of electoral victories in Texas Senate races: he won against Colin Allred in 2024 with 53.1% of the vote; against Beto O'Rourke in 2018 with 50.9%; and against Paul Sadler in 2012 with 56.5%.
