Short Term Health Insurance Changes Are Coming

LENOIR, NC (August 9, 2018 by Laura Sedlacek) — On August 3, 2018, the Departments of Health and Human Services, Labor and the Treasury published a Final Rule responding to the Administration’s Executive Order of October 2017.  The Final Rule addresses the plan term length and also includes language for a required notice that has to appear on Short Term Limited Duration Insurance aka STLDI contracts and application materials.  Effective October 2, 2018, these changes must be applied.

What is Short Term Health insurance?  It’s currently a temporary health insurance policy with a policy limit of what it will pay of usually 30 days plus for no more than 90 days.  Some can offer Rx cards and/or primary care doctor copays depending on the plan and company.  They require medical underwriting consisting of health questions, and they do not cover pre-existing conditions.  They are not considered minimum essential coverage, so they do not technically satisfy the mandate that requires all Americans to carry health insurance.  (Note:  this mandate is due to expire in 2019.)

Sometimes, offerings of Short Term Health coupled with a Hospital Indemnity plan will be offered as if it is minimum essential coverage (major medical) but it is not.  It does have limitations.

The new Short-Term Final Ruling will now allow a policy of up to 364 days (currently it’s up to 90 days) and allow a 36-month maximum duration.  States have the final authority on applying this federal rule or to create their own regulations around the STLDI plans.

Short Term Health or STLDI plans can be a viable option for folks needing coverage for a limited time such as graduating from school, turning age 26 and going off a parent’s plan, moving, changing jobs, etc. when access to traditional coverage (major medical) is not possible.   Until our state makes a decision on this coverage, currently you can buy a plan for up to 90 days with some companies offering two 90-day consecutive plans at the same time.

For more information, please contact Laura at Bush and Associates (828) 754-2601 or

~Laura Sedlacek is an Agent with Bush and Associates insurance in Lenoir, NC.  Bush and Associates has been offering Medicare Supplements, Other Medicare Products, Dental, Vision, Individual Health, Short Term Health, Long Term Care, Life, Group and other products since 1980.