(CNN) The US District Court of Appeals for the District of Columbia on Friday upheld the Trump administration's expansion of controversial short-term health plans, many of which are being sold as a less expensive alternative to Obamacare policies. The rule , which was issued in 2018, stems from an executive order President Donald Trump signed the year before. Short-term plans, which have been available for years and were originally designed to fill a temporary gap in coverage, are typically cheaper than Obamacare policies. But that's because they are allowed to exclude those with pre-existing conditions and to base rates on an applicant's medical history, unlike Obamacare plans. But in a 2-to-1 decision, the appeals court said it was not convinced by the arguments that the rule expanding short-term plans is contrary to law and arbitrary and capricious.

Source: CNN July 17, 2020 20:31 UTC