Prairie State Wire

Prairie State Wire

Monday, February 24, 2020

Short-term insurance bill advances in Senate

State Government

By Angela Underwood | May 23, 2018


The Senate Insurance Committee unanimously approved an amendment Tuesday to regulate temporary, limited-length insurance plans.

Sponsored by Sen. Heather Steans (D-Chicago) and Rep. Laura Fine (D-Glenview), the third amendment to HB2624, which was a compromise between consumer groups and the Illinois Department of Insurance and Illinois Life Insurance Council, titles the bill the Short-Term, Limited-Duration Health Insurance Act.

According to the bill synopsis, the act would provide “disclosure requirements for policies, applications, and sales and marketing materials for short-term, limited-duration health insurance policies and requires coverage subject to the Act to be approved by the Department of Insurance before it is issued or delivered."

With the act, short-term, limited-duration plans would be nonrenewable and restricted to 180 days while also maintaining extraterritoriality, filing and disclosure provisions.

Any insurance agent selling short-term, limited duration health insurance in Illinois, whether face-to-face or over the phone, would be required read aloud the disclosure to the consumer.

“A health insurance issuer who intends to deliver or issue for delivery a short-term, limited-duration health insurance coverage policy in this State shall file with the Department all paperwork required for individual health insurance coverage pursuant to the 50 Ill. Adm. Code 916 and all sales and marketing materials provided in the connection with enrollment in such coverage for informational purposes,” the bill text reads.  

With the amendment, provisions applying the coverage mandates and pre-existing conditions prohibition were removed. The effective date would be Jan. 1.

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