Administration finalizes rule limiting short-term, limited-duration insurance

The Departments of Health and Human Services, Labor and Treasury March 28 released a final rule to limit the sale of one type of non-comprehensive health care coverage and promote greater consumer understanding of their coverage options. 

Specifically, the rule restricts the length of short-term, limited-duration insurance, which was extended during the previous Administration. The initial contract period for STLDIs is capped at three months, with a maximum coverage period of four months, accounting for renewals and extensions. The rule also amends the consumer notice requirements for STLDI and fixed indemnity excepted benefits coverage to ensure consumers understand the clear differences between non-comprehensive and comprehensive coverage plans, and options for purchasing comprehensive coverage. 

The new contract term limits and notice requirements apply to STLDI plans beginning on or after Sept. 1, 2024. The notice requirements for group and individual market fixed indemnity excepted benefits coverage apply to coverage beginning on or after Jan. 1, 2025. 

The AHA last year submitted comments supporting the Administration’s proposal.