New Hampshire Provides Guidance for Short-Term Limited Duration Insurance

On Nov. 13, 2018, Commissioner Elias issued Bulletin INS-18-055-AB to provide guidance for New Hampshire’s fully insured short-term limited-duration insurance (STLDI). The guidance is in response to the final rules regarding short-term limited duration health plans that were issued by the US Department of the Treasury, IRS, EBSA, and HHS on Oct. 2, 2018. In short, this bulletin reminds insurance carriers that the final rule does not preempt state laws regarding STLDI coverage.

The final rule provides that the initial contract term of a short-term limited-duration health policy must be no less than 12 months and limited a carrier’s ability to renew or extend the policy for no more than 36 months. While NH law does allow for short-term, interim coverage solutions, such policy periods may not exceed six months and are nonrenewable. Further, a carrier cannot issue a short-term policy to a person who was previously covered by a short-term medical policy that results in more than 540 days of coverage within the preceding twenty-four month period. NH’s intent for this short-term coverage is to fill a gap for individuals that are in transition between coverage.

The STLDI is not subject to the ACA’s guaranteed issue and individual market rating rule requirements, but is subject to NH’s insurance mandates applicable to the individual market coverage and, to the extent the STLDI policy is network-based, it is subject to state requirements, such as external review, network adequacy, and balance billing.

This main purpose of this bulletin is to remind insurers doing business in NH that the state retains the right to regulate STLDI coverage. Employers do not need to take any action but may want to be familiar with the state’s individual insurance market requirements.

Bulletin INS-18-055-AB »