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Will the maximum short-term health policy duration be extended?

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.

The proposed change would extend the length of time you could have a short-term medical insurance policy to 12 months (or less). Currently, you cannot keep a short-term medical policy for longer 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).

Conversations are geared to start on April 22, 2018 with The Centers for Medicare and Medicaid Services (CMS).

Read the proposed rule here.

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