This bill amends current law to allow insurers to offer short-term, limited duration health insurance policies that can last for a specified term of less than 12 months and up to a total of 36 months, replacing the previous limitation of 6 months. The new legal language specifies that these policies must have an expiration date that is less than 12 months from the original effective date and can be renewed or extended for a total duration not exceeding 36 months. Additionally, the bill introduces a requirement for insurers to provide clear and conspicuous written notice to consumers during the application process and within the contract, informing them that these short-term plans are not subject to the Affordable Care Act (ACA) regulations, may exclude coverage for pre-existing conditions, and could have different terms compared to comprehensive health plans.

The bill also deletes the previous restrictions that prohibited the issuance of short-term policies to individuals who had been covered under such policies for more than 540 days within the preceding 24 months. The effective date for this act is set for January 1, 2027.

Statutes affected:
Introduced: 415:5
As Amended by the Senate: 415:5
Version adopted by both bodies: 415:5
CHAPTERED FINAL VERSION: 415:5
SB607 text: 415:5