Short-Term, Limited Duration Insurance Plans

Hugh McDonald SECRETARY OF COMMERCE AID 1,01.14.3 * * Bulletin No. 14-2025 Jimmy Harris COMMISSIONER, ARKANSAS INSURANCE DEPARTMENT To: All Licensed Healthcare Insurers, Health Maintenance Organizations (HMOs), Fraternal Benefit Societies, Hospital Medical Service Corporations, and Other Interested Parties From: Arkansas Insurance Department Date: October 14, 2025 Re: Short-Term, Limited Duration Insurance Plans Effective immediately, the Department will allow authorized issuers to sell short-term, limited duration insurance (STLDI) plans in a manner consistent with Arkansas law, which allows STLDI plans to be offered for an initial term of less than 12 months with renewals that may extend the total coverage period up to a maximum duration of 36 months. President Trump's Executive Order 14219, titled "Ensuring Lawful Governance and Implementing the President's 'Department of Government Efficiency' Deregulatory Initiative," directs federal agencies to review regulations to identify those that may impose undue burdens on small businesses or significant costs upon private parties that are not outweighed by public benefits. The Biden Administration limited the sale of short-term, limited duration insurance (STLDI) plans regarding the length of the plan and frequency of renewal. As such, STLDI plans had a limited duration of only four months. Consistent with Executive Order 14219, on August 7, 2025, the federal government announced it would not prioritize enforcement actions against states that apply the state's own definition of STLDI. Arkansas Department of Commerce Arkansas Insurance Department 1 Commerce Way, Suite 102 ' Little Rock, AR 72202 INSURANCE.ARKANSAS.GOV Arkansas defines STLDI as follows: "Short-term, limited duration insurance" means a health benefit plan that has an expiration date specified in the contract that is less than twelve (12) months after the original effective date of the contract and, taking into account renewals or extensions, has a duration of no longer than thirty-six (36) months. Ark. Code Ann. § 23-79-2002(5). In Arkansas, STLDI plans shall contain state mandated benefits, unless specifically exempted by law, and shall ensure that an insured's identification card contains language indicating the plan is an STLDI plan, pursuant to Ark. Code Ann. § 23-79-2003. STLDI plans must also provide notice on applications and enrollment forms in 14-point font that: • The plans contain exclusions for pre-existing conditions and other limitations, • The plans do not meet the requirements of the Affordable Care Act, and • If coverage expires or eligibility for coverage under the policy is lost, the consumer may have to wait until an open enrollment period to obtain other health insurance coverage. These fully underwritten plans have deductibles, coinsurance, and copays for benefits such as hospital inpatient services, outpatient surgery, and doctor's visits. Many policies offer optional benefits so consumers can tailor their coverage to suit their needs at a more affordable price than marketplace coverage. Arkansans who are considering purchasing or renewing a STLDI plan should speak with a licensed insurance producer to ensure they understand their coverage options or should contact the Consumer Services Division of the Arkansas Insurance Department at 800- 852-5494. For questions related to this Bulletin, please direct all inquiries to AID's Compliance Division at Insurance.Product.Compliance@Arkansas.gov or 501-371-2800. imm am Arkansas Insurance Commissioner z 1/7 Date r