The final federal rule reduces the total period of short -term health plans to 4 months

A final federal base announced by Treasury, Health, Humanitarian Services, and employment in March 2024 imposed new borders at the country level on limited -term insurance plans (STLDI).

The rule-which applies to plans that are sold or released in or after September 1, 2024-from the new Stldi plans to three months, and the total CAPS duration-including renovations-not exceeding four months.

“Renewal” includes a new policy issued by the same insurance company (or another insurance company in the same control group, which means that it is treated as one employer) within 12 months from the date of the first policy. Therefore, the person will not be able to buy multiple consecutive policies – a practice known as “stacking” – from the same insurance company or the subsidiary insurance company. This part of the base helps avoid the scenarios in which consumers record multiple Stldi policies without realizing that they are not comprehensive coverage.

Why did the federal government implement this rule?

The changes are designed to ensure the use of short -term coverage to fill a temporary gap between two comprehensive policies, instead of working as a long -term coverage solution. Protecting consumers at the federal level of Stoldi Pumpkin is limited, because Stldi is “excluded from the definition of individual health insurance”, and therefore is not regulated through federal rules such as reasonable prices, the law of surprises, the law of mental health and addiction addiction, etc.

Al Qaeda also aims to facilitate consumers to distinguish between individual/family -compatible family insurance and thus reducing the number of people who buy short -term coverage unintentionally when trying to purchase comprehensive coverage.

Stldi plans, which are sold on September 1 or 2024, must include a comprehensive and comprehensive notice that highlights the main differences between individual/family insurance compatible with the ACA that is sold through the market.

The disclosure, shown on page 102 of the final rule, must be displayed on the first page of the policy/contract and any related marketing or registration materials.

How does the base affect the STLDI plans that were already valid?

Under the new rules, there was no change in the STLDI policies that were already valid, or the policies that were sold and issued before September 1, 2024. The previous rules continue to apply these policies.

This means that the policy periods of the plans that were sold and issued before September 1, 2024 reach the states, and that insurance companies as long as policies do not have preliminary conditions for more than 364 days or a total period of more than 36 months.

How is the state’s regulations affected by al -Qaeda?

As was the case with the previous federal rules of Stldi, the states can impose tougher rules but not the most lenient rules in terms of the duration of Stldi.

For example, the state can shorten the STLDI for less than four months (or prohibit it completely, as some states have already done) or prohibit the sale of the second Stoldi policy within 12 months – even if it is issued by a different insurance company.

• In most countries, the state -based STLDI period varies from six months to the maximum of 36 months allowed under the federal rules of effective plans before September 2024 (you can see the rules of the state and the availability of this interactive map. So the STLDI plans in those states have to comply with the new federal rules that start with plans issued in or after September 1, 2024.
• Short -term health plans are not available in 14 states and DC:

In three other states-Dilair, Maryland and Oregon-Oregon-health insurance is available in the short term but was already limited to three months in the period, so the new federal rules have not changed anything from Stldi periods in those states. (Virginia also limited the initial conditions to three months, but it allowed the total period to extend to six months. ^{So the plans in Virginia were more limited than the new federal rules.)}

How many people have a short -term health insurance?

It is difficult to determine the exact number of registrants, as reporting Stoldi coverage data is not consistent with states. The final base cited a 2023 report of the National Insurance Commission, which indicated that 23,575 people were covered with short -term health plans at the end of 2022.

However, as it is mentioned in the final base, this does not include people who have Stldi for only part of the year, nor does it include people who have the association’s StDLI coverage, an important part-probably the majority of the market.

The final rule (see page 163) also indicates that the Congress Budget Office and the Joint Taxes Committee have previously estimated that up to 1.5 million people may be registered in STLDI. But Al -Qaeda also made it clear that it was before enhancing the distinctive ACA benefits through the US rescue plan and the law to reduce inflation – legislation that made market coverage more at reasonable prices and may reduce the number of people who chose STDLI.

Will people with STLDI have a special recording period to switch to individual/family coverage?

no. The final rule (page 68) notes that although there is a special registration period (SEP) for collective health insurance when Stldi ends, there is no SEP similar to covering the health of the individual family. This will remain the case under the new rule.

The states that run their health insurance markets are allowed to create SEPS, which is different from those available through the federal market, Healthcare.gov. But Healthcare.gov, the market platform in 32 states (31 states as of 2025), will continue its current protocol of not allowing Sep due to the end of a short -term health insurance policy.

However, as we will discuss below, the timing of the new base is designed to ensure that people can buy the STLDI plan that can continue until the end of 2024 (assuming that it is in good health enough to register in Stldi and the assumption that insurance companies in their case offer Stldi with the maximum of four months allowed). By that time using the open registration period for the compatible coverage of ACA, the consumer will be able to move without interruption in coverage to the individual market policy that begins on January 1, 2025, if they choose to.

What can people do when their short -term policy ends?

The maximum period of time for the policies that were sold or issued before September 2024 vary depending on the state, and insurance companies can increase their short -term policies that exceed federal rules or federal rules. (The insurance company, for example, CAP, can total politics within six months, even when governmental and federal rules are allowed for 36 months).

If a person is recorded in a new Stldi plan on or after September 1, the plan will be allowed to cover it until the end of 2024, as this will not be more than four months away. But again, four months are The permitted maximum periodnot The required period. For example, some insurance companies now offer a policy for only three months that are not renewable. For this reason, consumers need to be well aware of the details of their policy.

Assuming that someone bought a four -month policy that started on September 1, will continue until the end of the year, and they will be able to choose a major non -temporary medical plan for the 2025 evaluation year during the open registration for individual/family coverage that will be effective on January 1, 2025. The open registration begins on November 1.

If someone chooses to buy or renew the long -term Stldi policy in the long run before the end of August 2024, the date of the end of his plan will differ according to the plan they chose. For example, a policy purchased before September 2024 may last for a period of six months (i.e., it is likely to be in early 2025) or may last for 36 months. This is where consumers will need to be vigilant in understanding the effects of what they buy.

If they bought a short -term policy for a period of six months and not renewed, it enters into force on August 15, 2024, it will end in mid -February 2025. At that stage, the open registration for individual/family coverage will end with ACA.

The person will not be able to switch to a plan compatible with ACA unless he has a qualified life event that leads to a special registration period (note that some of the special registration periods are available only if the person has the minimum basic coverage, and Stldi is not considered the minimum basic coverage.)

Under the final base conditions, consumers will continue to buy another Stoldi policy from a different insurance company after their policy ended, assuming that many exporters are providing short -term plans in their area. But this will also depend on their health, as the new insurance company will be able to use medical subscription.

The market coverage is available

More than 21 million people registered in the market plans during the open registration period to cover 2024. About 92 % of them are eligible to obtain advanced tax credits that reduced their average monthly installments to only $ 74 a month.

Market policies cover these basic health benefits for ACA without any annual or lifelong hats on how much the plan will pay. They have hats on external costs, covering the conditions in advance, and do not build sex insurance or medical premiums, unlike Stldi policies.

The history of short -term federal insurance rules

From the late 1990s to October 2018, a limited -term health insurance has been allowed to have the length of the contract “less than 12 months” unless the state imposes tougher borders.

The new regulations entered into force in 2017, which limits the periods of the short -term plan for 90 days and prohibited the renewal of short -term policies.

In light of the completed organizational changes in 2018, the initial time allowed for the short -term plan was prolonged to 364 days. Insurance companies can provide policy renovations that will keep a valid policy for up to three years, as long as this has not contradicts with more strict rules imposed by the state.

Changing the base for the policies issued in or after September 1, 2024 was largely a reflection of the 2018 rule. But it did not fully return to the base that entered into force in 2017, allowing renewal and the total period of policy of up to four months, instead of the maximum period of three months and the prohibition of renewal that entered in 2017.

Louise Norris is an individual health insurance broker who has been written on health insurance and health reform since 2006. Dozens of opinions and educational pieces have written about the reasonable care law for the Healteinsrance.org.