Duration Changes to Short-Term Medical Health Policies

New rules will apply to short-term insurance (STI) plans issued after September 1, 2024

This spring the Departments of Health and Human Services, and Labor finalized new rules that will impose nationwide duration limits on short-term medical insurance plans. The ruling will limit these plans to three-month terms, with a one-month extension. Longer terms and one-year plans (364 days) for short-term limited duration insurance (STLDI) plans will no longer be offered. 

This new duration limit will take effect on September 1, 2024, and plans sold or issued on or after that date will limit short-term plans to three-month terms, with a one-month extension. 

It is also important to note that once the current STI policy expires, a new policy cannot be sold again for 12 months from the same insurance carrier. If a consumer wants to purchase another short-term policy after 4 months of coverage, they must find a different insurer and go through the application process again.

These changes are designed to ensure that short-term coverage is used to fill a temporary gap between two comprehensive health insurance policies, and not serving as a long-term coverage solution. STIs are exempt from the definition of individual health insurance coverage under the Public Health Service Act.

What this means to you. We strongly recommend you consider starting or renewing your short-term policy before the new rules take effect. Policies renewed before the deadline can be one year or longer depending on the circumstances. 

H&H Insurance Solutions is here to help answer all questions, explain all the details, and find the right policy that fits your unique needs. Give us a call, or use our contact us page to reach out.