State Limitations on the Duration of Short-term Health Insurance Plans, 2018
December 6, 2018
Federal rules that took effect in October 2018 allow short-term plans exempt from pre-existing condition protections and benefit standards to last for up to one year and to be renewed. The rule changes let a parallel market for skimpy plans operate alongside the market for comprehensive health insurance, exposing consumers to new risks an raising premiums for middle-income people in need of comprehensive coverage. But states continue to have the authority to set their own limits and consumer protections for short-term plans, and many have effectively banned short-term plans or required them to less three months or less, consistent with prior federal rules.