Washington Report

Advocacy Updates from Washington D.C.

Final Rule on Short-Term Health Insurance

The Department of Health and Human Services (HHS) issued a final rule expanding short-term, limited-duration health insurance (STLDI), a type of health insurance typically used to fill gaps in coverage when individuals are transitioning between policies, such as in between jobs.

The final rule allows for insurers to enable enrollment in these plans for up to 12 months and renew the coverage for up to 36 months. STLDI is exempt from the definition of individual health insurance under the Patient Protection and Affordable Care Act, and therefore is not subject to certain individual market rules, such as benefits requirements. Critics of STLDI argue the plans have reduced consumer protections as a result. The final rule included specific notice procedures insurers must follow to ensure consumers are aware of the exclusions and limitations of the STLDI coverage being purchased and offered clarity on the deference to state insurance law authority.

NAR provided comments on the proposed rule earlier this year, advocating for more affordable health insurance options for Americans, and continues to explore the feasibility of an association health plan (AHP) option for members and their families.

Read the Final Rule, which will be effective October 2, 2018.

Read the NAR Comment Letter.

For more information on NAR’s advocacy efforts, please visit on health care reform topic page.