Advisory Memorandum Regarding New Federal Rules Governing ShortTerm, Limited-Duration Insurance

COMMISSIONER OF SECURITIES AND INSURANCE Troy Downing Commissioner Office of the Montana State Auditor To: From: Date: ADVISORY MEMORANDUM ALL INTERESTED PERSONS TROY DOWNING .,.., L Commissioner of Securities£insMa::er 06/20/2024 Advisory Memorandum Regarding New Federal Rules Governing Short­ Term, Limited-Duration Insurance Background On March 28, 2024, the Departments of Health and Human Services, Labor, and Treasury released final rules regarding short-term, limited-duration insurance (STLDI) policies. 1 The rules impose new nationwide duration limits on STLDI policies and require an updated disclosure notice. An STLDI policy is a temporary limited policy that offers fewer benefits and consumer protections than other comprehensive types of health insurance policies, such as individual policies offered on HealthCare.gov. For example, an STLDI policy is not subject to federal individual market consumer protections and requirements for comprehensive coverage, such as prohibitions on discrimination based on health status, pre-existing condition exclusions, and lifetime and annual dollar limits on essential health benefits. In addition, an STLDI policy is not subject to federal consumer protections under the No Surprises Act and Mental Health Parity and Addiction Equity Act (MHPAEA). 1 89 FR 23338 (finalizing amendments to, pertinent here, 45 CFR §§ 144.103, 146.125, 146.145, 148.102, 148.220). See https://www.federalregister.gov/documents/2024/04/03/2024-06551/short-term­ limited-duration -insurance-and-independent-noncoordinated-excepted-benefits-coverage). See also, https://www.cms.gov/newsroom/fact-sheets/short-term-limited-duration-insurance-and-independent­ noncoordinated-excepted-benefits-coverage-cms. 840 Helena Avenue, Helena, Montana 59601 (main fax) 406-444.3413 I (securities fax) 406-444.5558 (insurance consumer services fax) 406-444.1980 I (legal fax) 406-444.3499 (phone) 800.332.6148 or 406-444.2040 I (email) csi@mt.gov I (web) www.csimt.gov