Important Short Term Limited Duration Insurance (STLDI) Changes
Earlier this year, the departments of Health and Human Services, Labor, and the Treasury all unveiled final regulations concerning Short Term Limited Duration Insurance (STLDI). These plans, often referred to as Short Term Medical (STM) plans, are offered as alternatives to the Affordable Care Act (ACA or Marketplace) plans. Here’s what we know:
Currently:
- STLDI plans range from 30 to 364 days of coverage
- Eligible for up to 2 years of automated renewals, providing up to 36 months of continuous coverage
- Individuals and/or families can reapply for coverage immediately after their current coverage ends
Changes as of September 1, 2024:
- STLDI initial plans are limited to no more than 3 months of coverage
- Have a maximum coverage period of no more than 4 months, when including account extensions or renewals
- Consumers are unable to purchase a policy within a rolling 12-month period with the same issuer or any issuer that is a member of the same controlled group
If you are already on a STLDI (Short Term) medical plan prior to 09/01/2024, your plan will be grandfathered into the old rules, including renewals or extensions in place. What you can do now in preparation is speak to your licensed agent about reapplying for a longer term with automated renewals or about alternate options. For more facts visit: https://www.cms.gov/newsroom/fact-sheets/short-term-limited-duration-insurance-and-independent-noncoordinated-excepted-benefits-coverage-cms.
Our office is always ready to answer questions, explain alternate options, and help with the enrollment process from start to finish. How can one of our licensed agents assist you today? Click here to contact us.