| Rule Number: |
19P015 |
| Title: |
Rule I-2018-03, Short-Term, Limited-Duration Health Insurance. |
|
Type:
|
Standard |
|
Status:
|
Adopted |
| Agency: |
Department of Financial Regulation
|
| Legal Authority: |
8 V.S.A. §§ 10, 11, 15, and 4084a |
| Summary:
| On August 3, 2018, the U.S. Departments of Labor, Health and Human Services, and Treasury released a final rule allowing health insurers to lengthen the maximum duration and number of permissible renewals of short-term, limited-duration health insurance plans (STLDI). The final rule allows the states significant flexibility in regulating STLDI. In accordance with the requirements of 8 V.S.A. § 4084a, this rule sets forth rules and procedures governing the filing, sale, marketing, and issuance of STLDI in Vermont. This rule protects Vermont consumers by ensuring that STLDI provides robust benefits and clear disclosure of its limitations compared to ACA-compliant health care policies and other types of minimum essential coverage. It promotes the stability of Vermont's health insurance markets, including Vermont Health Connect (VHC), by ensuring that STLDI is sold only to bridge temporary gaps in coverage and not as comprehensive health care coverage. |
| Persons Affected:
| Department of Financial Regulation, Department of Vermont Health Access, Vermont Health Connect, health insurance companies offering qualified health benefit plans on Vermont Health Connect, health insurance companies offering STLDI in Vermont, individuals health insurance consumers. |
| Economic Impact:
| The relaxation of the federal rules governing the maximum duration and renewability of STLDI has the potential to drive up the premiums for qualified health benefit plans by drawing healthy individuals away from VHC. By limiting the duration and renewability of STLDI, the proposed rule helps ensure that STLDI will not be sold as primary, comprehensive insurance and will not have an adverse impact on the affordability of polies offered on VHC. By requiring that STLDI provide robust benefits rather than the "skinny" benefits allowed by federal law, the rule ensures that Vermont consumers who purchase such policies will not face large, unexpected health care bills and that taxpayers and health care providers will l not be placed in the position of subsidizing health care for consumers who purchase inadequate coverage. |
| Posting date: |
Jan 23,2019 |
