Commercial updates.

Short-Term, Limited Duration Insurance Changes.

The IRS, DOL, and HHS (Departments) have issued a final rule regarding Short-Term, Limited-Duration Insurance (our Transition plans in Utah and Idaho and our Enhanced Short-Term plans in Idaho) that will be effective for new and renewing plans on 9/1/24.

The Departments are amending the federal definition of STLDI to limit the length of the initial contract term to no more than three months and the maximum coverage period to no more than four months. This is a change from an initial contract term of fewer than 12 months and a maximum total coverage period of up to 36 months.

The Departments have also amended the federal notice standard to help consumers better distinguish between comprehensive coverage and STLDI and to get information on their health coverage options (a copy of the new notice is linked below). The notice must be prominently displayed on the first page of the policy, certificate, or contract of insurance, including for renewals and extensions, and included in any marketing, application, and enrollment (or re-enrollment) materials.

New Notice Standard