Short-Term Limited Duration Health Plans

Indiana Department of Insurance September 4, 2018 Bulletin 244 SHORT-TERMLIMITEDDURATIONHEALTHPLANS This bulletin is directed towards all insurers issuing short-te1m, limited-duration insurance policies outlined within Indiana Code§ 27-l-37.3-5(b)(6) and all Hoosiers. The purpose ofthis bulletin is to discuss Indiana's existing statutes on short term health plans in light ofthe new federal rule on short-te1m, limited-duration policies. On August 3, 2018, the U.S. Department ofHealth and Human Services ("HHS") published the "Short-Term, Limited-Duration Insurance" final rule ("Final Rule") to implement President Trump's executive order of October 12, 2017. The Final Rule amends the defmition of short-term, limited-duration insurance to extend the maximum duration ofa short-te1m, limited­ duration policy. Effective October 2, 2018, short-term, limited-duration policies may have an initial contract term of less than twelve (12) months with a maximum duration not to exceed thirty-six (36) months under a single contract. This Final Rule reverses previous federal guidance issued by the prior administration, which limited short-term, limited-duration plans to a maximum ofthree (3) months. This Final Rule does not preempt existing Indiana state law that regulates these plans. Under Indiana Code§ 27-1-37.3-5(b)(6), short-te1m, limited duration insurance must not be for longer than six ( 6) months and may not be renewed. Insurers that have policyholders emolled in plans that followed the previous federal guidance by limiting plans to three (3) months may continue to offer these policies. Effective October 2, 2018, ifan insurer wants to issue policies conforming to current Indiana state law, the insurer will need to submit a new filing for a six (6) month duration policy through the System for Electronic Rate and Form Filing ("SERFF"). Questions regarding this bulletin should be directed to compliance@idoi.IN.gov. INDIANA DEPARTMENT OF INSURANCE Insurance Commissioner