ÐÓ°ÉÊÓƵ

Last Updated: 7/2/2026

Background: Short-term, limited-duration insurance (STLDI) is a type of health insurance that provides coverage to policyholders for temporary periods.  While federal rules limit the initial contract term to no more than three months and the maximum coverage period, including renewals or extensions, to no more than four months, the second Trump Administration has suspended enforcement of the rule. These plans typically offer limited coverage and benefits. Short-term plans may offer coverage for some of the same types of health care services as traditional comprehensive health insurance, but they have very different plan designs and are not regulated with the same consumer protections as comprehensive health coverage.

STLDI policies are often medically underwritten, meaning insurance companies may review a person’s health history when deciding whether or offer coverage and how much to charge. These plans may not cover pre-existing conditions and are not required to cover essential health benefits such as maternity care, prescription drugs, or mental health care. These plans can also impose annual and lifetime limits on benefits and are not subject to other ACA market requirements, including rate review or minimum medical loss ratios. 

Because these plans generally provide less coverage and are subject to fewer regulations than ACA-compliant plans, the often have . This can make them appealing to some consumers, especially those who do not qualify for financial assistance to purchase ACA coverage or who miss open enrollment periods.  However, consumers should carefully review plan details to understand coverage limitations and potential out-of-pocket costs before enrolling. 

Federal regulation of short-term, limited duration insurance has shifted with changing presidential administrations. A revised rule on STLDI from the second Trump Administration is expected in 2026. Several states have implemented measures to regulate or limit STLDI policies. These state-level limitations include duration limits and, in certain instances, complete bans on the sale of STLDI plans. This trend demonstrates an increasing number of states adopting stricter regulations on these short-term plans. 

State insurance regulators are exploring the effects of STLDI plans on the broader health insurance market, balancing the benefits of providing a temporary coverage option against the risks of undermining comprehensive health insurance protections. 

Actions: State insurance regulators have historically had limited information about the size of the STLDI market because these plans have not always been subject to uniform enrollment and market data reporting requirements. ÐÓ°ÉÊÓƵ’s Market Conduct Annual Statement (MCAS) now includes Short-Term Limited Duration Health as a data collection line, providing regulators with additional market conduct information in participating jurisdictions.

In 2019 the Accident and Sickness Insurance Minimum Standards (B) Subgroup revised and renamed ÐÓ°ÉÊÓƵ Model #170 as the Supplementary and Short-Term Health Insurance Minimum Standards Model Act. The revisions removed provisions related to health benefit plans subject to the ACA's requirements and incorporated provisions concerning STLDI plans, including requirements for consumer disclosures. The revised model aims to address the lack of consumer protections in STLDI plans by setting minimum standards and ensuring that consumers are adequately informed about the limitations of these plans.

In 2024, the ÐÓ°ÉÊÓƵ adopted revisions to its Model Regulation to Implement the Accident and Sickness Insurance Minimum Standards Model Act (#171). The revised model regulation specify that short term, limited-duration plans must provide the benefits and coverages required by the state. The revisions also clarify provisions on consumer disclosure and outline of coverage requirements making them much more understandable for consumers, including requiring specific language stating that these plans are supplemental and are not intended to be major medical coverage.

The ÐÓ°ÉÊÓƵ’s Health and Managed Care (B) Committee is charged with monitoring developments in the health insurance market.