N.H. Insurance Dept. Comments on Proposed Regulations for Short-Term, Limited-Duration Insurance

CONCORD, New Hampshire, Sept. 13 -- The New Hampshire Department of Insurance issued the following news release on Sept. 12, 2023:

The New Hampshire Insurance Department (NHID) yesterday submitted official comments to the Centers for Medicare & Medicaid Services (CMS) regarding the proposed regulations on Short-Term, Limited-Duration Insurance (STLDI). The comments emphasize the importance of state flexibility in regulating STLDI products and suggest revisions to the proposed rule to maintain such flexibility.

The proposed regulations on STLDI were published in the Federal Register on July 12, 2023, inviting input from stakeholders. As the primary regulators of insurance markets in New Hampshire, the NHID is committed to ensuring consumer protection and promoting market competition while allowing states to make their own choices in regulating insurance products.

In the submitted comments, Deputy Commissioner DJ Bettencourt stated, "We strongly prefer to retain the flexibility to determine whether, and under what conditions, STLDI is appropriate for New Hampshire. We urge a revision to the proposed rule to continue state flexibility in the regulation of these products."

The New Hampshire Insurance Department's comments also highlight the state's existing statute, NH Rev Stat Sec. 415:5 (2015), which governs the duration and availability of short-term insurance policies. Under this statute, short-term policies in New Hampshire can last up to six months and may be renewed for a total coverage period of up to 18 months. These policies are nonrenewable, and each additional six-month policy may be subject to underwriting.

Deputy Commissioner Bettencourt noted, "We believe this statute appropriately balances the acknowledged drawbacks of these products for consumers with consumer need for these products when minimal coverage is necessary for a short period of time, they have no other insurance options, or an ACA compliant policy is otherwise unaffordable."

New Hampshire's current statute on STLDI represents a middle ground between previous federal regulations and the current proposal. While the Trump Administration's proposal allowed STLDI plans to last up to a year and be renewed for up to three years, the current proposal seeks to limit STLD plans to a maximum of three months with a one-month renewal option.

The NHID remains committed to working with CMS and other stakeholders to ensure that insurance regulations align with the needs and preferences of New Hampshire consumers.

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The New Hampshire Insurance Department Can Help

The New Hampshire Insurance Department's mission is to promote and protect the public good by ensuring the existence of a safe and competitive insurance marketplace through the development and enforcement of the insurance laws of the State of New Hampshire. Contact us with any questions or concerns you may have regarding your insurance coverage at 1-800- 852- 3416 or (603) 271-2261, or by email at consumerservices@ins.nh.gov.

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Original text here: https://www.nh.gov/insurance/media/pr/2023/documents/20230912-stldi-letter.pdf