Administration Finalizes Short-Term Health Rule

Yesterday, the Internal Revenue Service, Department of Labor, and Department of Health and Human Services released a final rule on limited duration health insurance (STLDI). The rule essentially reverses a 2016 rule regulating STLDI issued by the Obama Administration.

The new rule allows for the sale and renewal of STLDI plans that cover longer periods than the previous maximum period of three months. Such coverage can now cover an initial period of up to 12 months—and, considering any extensions, a maximum duration of no longer than 36 months.

The rule is the result of an executive order President Trump issued in 2017 on access to health insurance.

A draft rule was originally proposed last spring, and the Big "I" submitted a comment letter as part of the rulemaking process. In it, the association expressed support for state insurance regulation and giving state regulators the flexibility to make decisions about health insurance markets in their states.

The Big “I” will continue to work with the Trump Administration on efforts to stabilize state health insurance markets and increase consumer access to health insurance.

Jennifer Webb is Big “I” federal government affairs counsel.