Short-term health plans in Indiana
- Indiana enacted new legislation in 2019 that allows for longer short-term plans (up to 364-day terms and 36-month total duration).
- The new law also requires any short-term plan to have a benefit cap of at least $2 million. The state lawmaker who sponsored the bill is pushing for a similar national model law that other states could use to strengthen their own laws.
- Indiana conducts rate reviews of short-term plans.
- At least eight insurers offer short-term plans in the state.
How long can short-term plans last in Indiana?
Prior to July 2019, Indiana law stated that short-term health insurance plans couldn’t have terms of more than six months, and couldn’t be renewed. But the state enacted legislation (H.B.1631) in 2019 that changed the rules as of July 1, 2019.
Under the terms of H.B.1631, short-term plans in Indiana can follow the new federal guidelines in terms of duration: They can have initial terms of up to 364 days, and can have a total duration, including renewals, of up to 36 months.
The state has clarified that these new rules only apply to plans that are issued on or after July 1, 2019; plans issued before that must comply with the state’s previous rule, which limited short-term plans to six months in duration.
Additional Indiana regulations on short-term health plans
Although H.B.1631 eliminated the state’s previous six-month cap on short-term plans, it imposed a new requirement in terms of benefit caps. All short-term plans in Indiana are now required to have maximum benefit limits of at least $2 million. Short-term plans are also required to provide coverage for ambulatory care (ie, outpatient care), hospitalization, emergency, and laboratory services.
H.B.1631 was sponsored by Indiana state Representative Martin Carbaugh, a Republican from Fort Wayne. Carbaugh is now sponsoring a model act that would encourage other states to take similar action to strengthen their requirements for short-term health plans.
The Indiana Department of Insurance conducts rate reviews for short-term plans, which must be filed using the state’s basic actuarial memo outline.
At least eight insurers offer short-term plans in Indiana
- American Financial Security Life Insurance Company
- Aspen Insurance
- Companion Life
- Independence American Insurance Company
- National General
- UnitedHealthcare (Golden Rule)
- United States Fire Insurance Company
- United Security Health and Casualty
Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.