Place your Text HereOn March 28, 2024, the Department of Health and Human Services (HHS), Labor, and the Treasure Departments released final rules for short-term medical (STM) insurance plans proposed by the Biden administration in 2023. The new proposal aims to shorten STM durations to a maximum of three months with a one-month extension and not allow policies to be sold again with the same insurance carrier for a period of 12 months from the original effective date of coverage.

• As of September 1, insurance carriers are limited to offering 3 months of short-term medical coverage with a 1-month extension to any consumer within a 12-month period.
• Agents or brokers and marketing companies are not precluded from offering clients additional coverage from other insurance companies.
• New disclosures of marketing material, applications, and certificates must clearly outline the differences between short-term medical and Affordable Care Act (ACA) coverage to help consumers make the most informed purchasing decision.

What Does This Mean for Consumers?

• If a consumer, after 4 months of coverage, wants to purchase another short-term medical policy, they will need to find a different Issuer and go through the application process again.
• This process could continue for as long as the consumer wants to purchase more short-term medical coverage and can pass underwriting each time, subject to state availability.

We will keep you informed as we move forward, but it's important to remember that until September 1st, it is business as usual for you. Focus on serving your customers with the products we offer today. We offer many solutions for your clients who don't quite fit the ACA mold yet would be uninsured if they didn't have immediate coverage options.  Fill out the form on this page to request more info on our STM plans and our alternatives. 

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