Federal Government Announces Final Rule on Short Term Health Insurance

On August 3, 2018, the Departments of Health and Human Services, Labor and the Treasury published a Final Rule in response to the president’s October 2017 Executive Order. This final rule addresses a number of issues surrounding short term health insurance, also sometimes called temporary health insurance or short term limited duration insurance.

The Final Rule discusses plan term lengths, addresses the issue of renewing coverage, and redrafts a required notice that must appear on short term insurance application materials and contracts.

• It returns short term plan durations to the 364-day term length allowed prior to 2017
• It allows a 36-month maximum duration of renewable coverage
• It indicates a required notice regarding the limitations of short term health insurance that must be displayed on application materials and contracts

The new regulations outlined in the Final Rule apply to short term plans with effective dates starting October 2, 2018, and after. States still have the final authority to apply the federal rule or create their own regulations around short term plans, so plan benefits and durations could vary by state.

You can view the entire Final Rule regarding short term insurance at the Federal Register website.