Short-term health insurance plans are not available in New York
- New York does not allow the sale of short-term plans.
- New York requires health plans to be guaranteed renewable and cover essential health benefits.
- New York’s rules continue to apply, even though the federal government has relaxed the rules for short-term plans.
Under long-standing rules, New York does not allow the sale of short-term health insurance plans.
All individual and group health insurance plans in New York must be guaranteed renewable (with limited exceptions, such as nonpayment of premiums, fraud, or an insurer’s discontinuation of all policies in a given market). As such, plans with limited terms are not permitted.
In addition, New York requires that “every accident and health insurance policy or contract that provides hospital, surgical or medical expense coverage must be comprehensive and, with respect to individual and small group coverage, must provide coverage for essential health benefits.” Short-term plans in most states typically don’t cover some of the essential health benefits (maternity, mental health/substance abuse, and prescription drug coverage are often not included), and such plans could not be sold in New York.
As a result of those two regulations, short-term health plans cannot be sold in New York. The Trump Administration’s new rules for short-term plans are clear in noting that states may continue to impose tighter regulations than the new federal rules, and New York has clarified that they will continue to prohibit the sale of short-term health plans within the state.
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.