02/22/2018
Proposed Rule Expands
Duration of Short-Term Coverage
The Departments of Health & Human Services (HHS), Labor, and Treasury have issued a proposed rule that would change the maximum duration of short-term, limited-duration health insurance coverage.
Short-term, limited-duration coverage is designed to provide temporary coverage for individuals transitioning between health care policies, such as an individual who is between jobs or a student taking a semester off from school.
The proposed definition would change the maximum duration of short-term, limited-duration insurance to less than 12 months, as opposed to the current maximum duration of less than 3 months.
Additionally, the proposed rule would revise the notice that issuers are required to provide to a consumer to point out the limited nature of the benefits in the policy. For policies with a coverage start date before January 1, 2019, the notices would continue to state that the insurance is not minimum essential coverage (MEC).
