Availability of short-term health insurance in Indiana

Yes. As of 2022, there were at least eight insurers offering short-term health insurance in Indiana.

Prior to July 2019, state regulations ensured that short-term health insurance in Indiana 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 health insurance in Indiana can follow the new federal guidelines in terms of plan duration: They can have initial terms of up to 364 days, and can have a total short-term plan duration, including renewals, of up to 36 months. But it’s important to note that the plans must also have benefit caps of at least $2 million. 

Indiana has clarified that these new rules only apply to plans that are issued on or after July 1, 2019; plans issued before that had to comply with the state’s previous rule, which limited short-term plans to six months in duration. 

As of 2022, there are at least eight insurance companies offering short-term healthcare policies in Indiana:

• American Financial Security Life Insurance Company
• Anthem Blue Cross Blue Shield (Enhanced Choice plans)
• Companion Life
• Independence American Insurance Company
• National General
• The North River Insurance Company
• UnitedHealthcare (Golden Rule)
• United Security Health and Casualty

The available policies differ in terms of the benefits they provide, the limitations they impose, the term lengths they offer, and whether the plans are renewable. Carefully review the details of any plan you’re considering.

Short-term health insurance policies in Indiana can be purchased by residents who meet the underwriting guidelines set by insurers.  This generally means being under 65 years old (some insurers put the age limit at 64 years) and in fairly good health.

Short-term health plans typically include blanket exclusions for pre-existing conditions, so they are not adequate for residents of the Hoosier State who need certain medical care and are seeking a policy that will provide coverage for those needs. And because short-term plans do not have to cover essential healthcare benefits, they often have conspicuous gaps in the coverage. Maternity care, mental health care, and prescription drugs are the services that are most often excluded, but there are a wide range of limitations that can be found on short-term plans, and it’s important to read the fine print carefully.

If you need health insurance coverage in Indiana, your first step should be to see whether you’re eligible to enroll in an ACA-compliant major medical plan (Obamacare) instead, and whether you’d qualify for a premium subsidy through the health insurance exchange in Indiana (if you do qualify for a subsidy, the monthly premiums for an ACA-compliant plan may be much less costly than you were expecting, and even lower than the premiums for short-term plans).

Open enrollment for ACA-compliant individual/family policies runs from November 1 to January 15 each year. Outside that window, you may qualify for a special enrollment period if you experience a qualifying life event. A pre-existing medical condition will not hinder your eligibility for these plans, but the availability of ACA-compliant plans is limited to open enrollment and special enrollment periods. 

(Note that some special enrollment periods are available year-round for eligible enrollees, such as the enrollment opportunity for Native Americans, and the low-income special enrollment period.)

ACA-compliant plans are purchased on a month-to-month basis, so you can enroll in one even if you’re only going to need it for a few months before another policy takes effect. So for example, if you know that you’ll have coverage from a new employer or Medicare within a few months, you can still enroll in an ACA-compliant plan (during open enrollment or a special enrollment period) and then cancel it when your new coverage takes effect.

But if you’re unable to enroll in an ACA-compliant individual market plan or a plan offered by an employer, a short-term plan is a better option than remaining uninsured.

Sometimes a short-term health insurance plan might be the only option, or the most realistic option if:

• You missed open enrollment for ACA-compliant coverage and do not have a qualifying event that would trigger a special enrollment period.
• You’ve enrolled in an ACA-compliant individual market plan but have to wait up to several weeks before it takes effect (enrollments completed during open enrollment will take effect January 1 or February 1, depending on the enrollment date, and enrollments completed during a special enrollment period will generally take effect the first of the following month).
• You’ll soon be enrolled in Medicare but don’t have access to other coverage in the meantime. If your Medicare start date is in the following year or later, know that you can enroll in an ACA-compliant plan (with a premium subsidy if you’re eligible) during open enrollment, and then cancel it when your Medicare coverage takes effect.
• You’re newly employed and the employer will provide health coverage, but has a waiting period of up to three months before you can be covered by the employer-sponsored healthcare plan.
• You’re not eligible for Medicaid or a premium subsidy in the exchange/marketplace, an ACA-compliant plan might simply be too costly in terms of the monthly premiums. The American Rescue Plan and Inflation Reduction Act have ensured that most people can access affordable coverage, but a person does need a lawfully present immigration status in order to enroll through the exchange. And even though the IRS is fixing the “family glitch” as of 2023, not all families will actually be eligible for truly affordable coverage. 

Prior to July 2019, state regulations ensured that short-term health insurance in Indiana 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 health insurance in Indiana can follow the new federal guidelines in terms of plan duration: They can have initial terms of up to 364 days, and can have a total short-term plan duration, including renewals, of up to 36 months.

In addition, short-term plans in Indiana cannot impose a benefit cap of less than $2 million per person.