Clarification of Public Law 151-2021 (SEA 325) Definition

Indiana Department of Insurance June 28, 2021 Bulletin 259 CLARIFICATION OF PUBLIC LAW 151-2021 (SEA 325) DEFINITION This bulletin is directed towards all insurers issuing a policy ofaccident and sickness insurance as defined in IC 27-8-5-l(a). The purpose ofthis bulletin is to clarify the application of IC 27-2-26 under Public Law 151-2021 (SEA 325). The Indiana General Assembly passed P.L. 151-2021 during the 2021 Legislative Session. Section 15 ofP.L. 151-2021 adds a new chapter titled Public Forums by Health Carriers. Effective July 1, 2021, a health carrier shall hold an annual public forum in which the health carrier shall obtain feedback from the community about the health carrier's perfo1mance in the previous year and discuss the premiums charged by the health carrier. IC 27-2-26-1(1) defines "health cani.er" as "an insurer, as defined in IC 27-l-2-3(x), that issues a policy of accident and sickness insurance, as defined in IC 27-8-5-l(a)." The definition ofa policy of accident and sickness insurance under IC 27-2-26-1 (1) is overly broad and imposes requirements on non-major medical policies generally excluded from the requirements ofmajor medical insurance policies. Examples ofthese non-major medical policies include specified disease policies and hospital indemnity policies. The use ofthe broad definition ofa policy ofaccident and sickness insurance has created confusion amongst insurers. In order to eliminate any confusion, the Department will not impose the requirements of IC 27-2-26 under P.L 151-2021 on health catTiers issuing a policy ofaccident and sickness insmance that is included in IC 27-8-5-2.S(a). However, the requirements ofIC 27-2-26 will still be imposed on short term insurance plans as they are included in the definition of"health carrier" under IC 27-2-26-1(4). Questions regarding this bulletin should be directed to compliance@idoi.in.gov. INDIANA DEPARTMENT OF INSURANCE AmyL. Beard Insurance Commissioner