Availability of short-term health insurance in Indiana

Yes. As of 2024, there were at least five 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 current 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.

However, federal limits will change in 2024 under new Biden administration rules for short-term health plans. Short-term plans issued or sold on or after Sept. 1, 2024 will be limited to total durations of no more than four months, including renewals. Since this is stricter than Indiana’s rules, the new federal rules will apply to policies sold in Indiana.

Short-term health insurance policies in Indiana can be purchased by residents who meet the underwriting guidelines set by insurers.

Most short-term health insurers will issue coverage to people under 65 years old who don’t have any of the specific medical conditions that will result in a declined application.¹ But the underwriting requirements vary from one insurance company to another.

Most short-term health insurance plans exclude coverage for pre-existing conditions, and they often use post-claims underwriting (meaning that they will go back through a person’s medical records after a claim is filed, to make sure it isn’t related to a pre-existing medical condition).²

Short-term health plans also generally do not cover all of the ACA’s essential health benefits; the most commonly excluded are maternity care, prescription drugs, and mental health care.¹ They also tend to impose dollar limits on the coverage they do provide. It’s important to double-check all of the plan information before purchasing a short-term policy, to make sure that you understand the limitations of the plan.

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), and whether you’d qualify for a premium subsidy through the health insurance exchange in Indiana (HealthCare.gov).

Especially if you 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.

In Indiana, 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 American Indians and Alaska Natives, 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 fixed the “family glitch” as of 2023, not all families are 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 was allowed to follow the 2018 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.

But as noted above, the federal rules are changing for short-term policies sold or issued starting in September 2024. Total durations of more than four months will no longer be allowed in any state.