Insights

Guidance for Short-Term Health Insurance


On Oct. 18, 2018, Commissioner Atkins released Bulletin 2018-02 to remind carriers and producers that issue policies in Kentucky 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 Kentucky 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. Like the federal rule, Kentucky law limits a short-term policy to a term that is less than 12 months, and a maximum 36-month duration (including renewals and extensions, if applicable) for the same contract. Moreover, in Kentucky, short-term policies are subject to state coverage mandates.

The Department also included a reminder that the commissioner may disapprove any form or withdraw previous approval where the benefits provided within an individual health insurance policy (i.e., short-term health insurance policy) “are unreasonable in relation to the premium charged.”

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

Bulletin 2018-02 »