Short-term Limited Duration FAQ
- Can issuers continue to sell short term limited duration products in Michigan? Will these products be subject to guarantee issue requirements?
Short-term products can be offered off-Marketplace but are not considered to be minimum essential health coverage. Short-term limited duration policies are exempt from the Health Insurance Portability and Accountability Act of 1996 (HIPAA) requirements, including guaranteed issue. See 45 CFR 144.103.
- Can issuers extend or renew short-term limited duration policies for longer than permitted by Michigan law?
Federal regulations permit issuers to renew or extend short-term limited duration policies up to a maximum of 36 months. However, Section 2213b(9) of the Insurance Code, MCL 500.2213b(9), governs short-term limited duration policies issued in Michigan, and limits the total period of coverage to 185 days out of any 365-day period. The federal regulations do not preempt Michigan law. Accordingly, short-term limited duration policies issued in Michigan must comply with Section 2213b(9) and cannot be renewed or extended for more than 185 days.
The answers provided are not meant to be a substitute for legal advice.