On March 28, 2024, the U.S. Departments of Health and Human Services (HHS), Labor, and Treasury (the “tri-agencies”) released a final regulation that updates the definition of short-term, limited duration insurance (STLDI) and requires consumer disclosures for STLDI and hospital and fixed indemnity policies. These changes are designed to help consumers more clearly distinguish the differences between STLDI/fixed indemnity policies and comprehensive health insurance coverage that must comply with consumer protections under the Affordable Care Act (ACA) and other federal laws. State departments of insurance are the primary agencies responsible for oversight and enforcement of the new STLDI definition and notice requirements, and existing state laws that conflict with the new federal standards are preempted. In a recent Expert Perspective for the State Health & Value Strategies project, CHIR’s Sabrina Corlette discusses the implications of the rule for state insurance regulators.

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