S. 2507 – Reading Mode

115th CONGRESS

2d Session

S. 2507

IN THE SENATE OF THE UNITED STATES

March 7, 2018

Mr. Barrasso introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To require short-term limited duration insurance issuers to renew or continue in force such coverage at the option of the enrollees.

Short title

This Act may be cited as the Improving Choices in Health Care Coverage Act.

Short-term limited duration insurance

(a)

Definition

Section 2791(b) of the Public Health Service Act (42 U.S.C. 300gg–91(b)) is amended by adding at the end the following:

(6)

Short-term limited duration insurance

The term short-term limited duration insurance means health insurance coverage provided pursuant to a contract with a health insurance issuer that has an expiration date specified in the contract (not taking into account any extensions that may be elected by the policyholder with or without the issuer's consent) that is less than 12 months after the original effective date of the contract.

(b)

Guaranteed renewability

Section 2703 of the Public Health Service Act (42 U.S.C. 300gg–2) is amended—

(1)

in subsection (a), by inserting or offers short-term limited duration insurance after group market; and

(2)

by adding at the end the following:

(f)

Application to short-Term limited duration insurance

(1)

In general

In applying this section in the case of short-term limited duration insurance—

(A)

a reference to health insurance coverage with respect to such coverage offered in the individual market shall be deemed to include short-term limited duration insurance; and

(B)

a reference to health insurance issuer with respect to health insurance coverage offered in the individual market shall be deemed to include an issuer of short-term limited duration insurance.

(2)

Special rule for short-term limited duration insurance

In the case of short-term limited duration insurance, at the time of application for enrollment in such insurance coverage, an individual may decline renewability of such coverage in accordance with this section, and the contract between such individual and the health insurance issuer shall specify whether the individual opted for renewability or no renewability.

(c)

Applicability

The amendments made by subsections (a) and (b) shall apply with respect to contracts for short-term limited duration insurance that take effect on or after May 1, 2018.