Guidance for Short-Term Health Insurance

On Sept. 4, 2018, Insurance Commissioner Robertson released Bulletin 244 to remind carriers and producers who issue policies in Indiana of the state insurance requirements for short-term health insurance. This bulletin is intended to remind carriers doing business in the state that state law isn’t preempted regarding short-term health insurance and, thus, carriers doing business in Indiana must continue to comply with state law.

As background, the federal government issued a rule in August 2018 that extended the initial contract term of short-term policies issued on or after Oct. 2, 2018, to be no more than 12 months while limiting renewals or extension of such policies to no more than 36 months. Unlike the federal rule, Indiana law limits a short-term policy to a term that is less than 6 months. Moreover, short-term policies in Indiana are nonrenewable.

This bulletin was for informational purposes only and employers need not take any action at this time. The intent was to remind carriers that Indiana insurance law continues to apply to short-term health insurance, and carriers must factor in Indiana policies before issuing a product in response to the federal guidelines.

Bulletin 244 »