ARIZONA HOUSE OF REPRESENTATIVES

SB 1109: short-term limited duration insurance; notice.

PRIME SPONSOR: Senator Livingston, LD 22

BILL STATUS: House Engrossed

Overview

Modifies the length of time for short-term limited duration insurance (STLDI) coverage from 185 days to up to one year. Provides for extensions or renewals for 24 months with a total duration period of not longer than 36 months.

History

A.R.S. § 20-1379 defines STLDI as health insurance coverage that is offered by a health care insurer, that remains in effect for no more than 185 days, that cannot be renewed or otherwise continued for more than 180 days. An STLDI is not intended or marketed as health insurance coverage subject to guaranteed issuance or guaranteed renewal provisions of the laws of this state but that is creditable coverage.

Effective October 2, 2018, the federal definition of STLDI was updated in the final rule issued by the Departments of the Treasury, Labor and Health and Human Services. STLDI means health coverage provided pursuant to a contract with an insurer that is less than 12 months and provides for renewals or extensions for up to 24 months. The rule outlines notice language that must appear in a contract for STLDI.

Provisions

1. Amends the definition of short-term limited duration insurance. (Sec. 2)

2. Outlines the notice language required to be on all policies or certificates issued for STLDIs. (Sec. 2)

3. Requires the insurer to provide notice to the insured before expiration of that policy needs to be renewed or is expiring. (Sec. 2)

4. Makes technical and conforming changes. (Sec. 1)

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8. Fifty-fourth Legislature                       SB 1109

9. First Regular Session                            Version 1: House Engrossed

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