This bill amends existing law regarding short-term, limited duration health insurance policies by specifying that such policies can only be issued for a duration that complies with federal regulations. The current language, which allows for nonrenewable individual policies, is replaced with a focus on short-term, limited duration policies. The bill stipulates that these policies may provide coverage for a specified term, but the total duration—including any renewals or extensions—cannot exceed the maximum length allowed under federal law.

Additionally, the bill removes previous restrictions that limited the initial term to six months and prohibited issuance to individuals who had received more than 540 days of coverage from short-term medical policies within the last 24 months. The new provisions aim to align state regulations with federal standards, ensuring that consumers have access to short-term health insurance options that are compliant with federal guidelines. The act is set to take effect on January 1, 2027.

Statutes affected:
Introduced: 415:5
SB607 text: 415:5