A federal rule announced on March 28, 2024 by the Treasury, Health and Human Services and Labor departments will reshape the short-term health insurance market.
New limits on policy length
Previously, short-term policies could be renewed each month for as long as three years with the same carrier. Starting September 1, 2024, the new regulations limit each term to three months and cap the total coverage period at four months, counting any renewals that occur within that span.
The adjustment directly impacts wedding-industry entrepreneurs who have relied on these plans to fill gaps between full coverage. Under the revised rules, stacking several short-term policies from the same or affiliated insurers within a 12-month period will no longer be allowed.
Officials say the purpose is to keep the products as true interim solutions, not as replacements for ACA-compliant insurance, which provides broader protections.
Recent statistics show that 7.6% of Americans under age 65 were without health insurance in 2023. Cost was the leading reason, cited by 64.2% of respondents, followed by eligibility problems at 28.4% and a personal decision not to purchase coverage at 26.1%.
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Many in the wedding sector have favored plans from Golden Rule, a UnitedHealthcare affiliate, because they usually feature lower monthly premiums and smaller deductibles than ACA-compliant options. The 12-month version of those policies has been especially popular among cost-conscious business owners.
Philip Blystone, a licensed agent with HealthGuys, explained, “The bottom line is that short-term medical plans are major medical PPO plans and have been a great option for thousands of people, and the federal government is taking away that option.”
Policies issued before September 1, 2024 will remain in force under the old rules until they naturally expire, though they must still obey any state-specific regulations. Some states already enforce tighter limits or outright bans on short-term coverage, which could further narrow the pool of available options.
The upcoming open enrollment window for ACA-compliant coverage begins on November 1, 2024. This period gives affected consumers a chance to secure longer-term protection before the short-term alternatives disappear.
