Pursuant to a court request for information on timing, three government agencies said their intention is to release new regulations to extend the time permitted to short-term limited duration (STLD) health insurance. STLD health insurance—which currently can be in place for only four months—does not have to comply with most Affordable Care Act (ACA) requirements, including consumer protections and minimum essential benefits.

The timeline for new STLD regulations came from the Departments of Labor (DOL), Health and Human Services (HHS), and Treasury. This is the “tri-agency” source of regulations governing most ACA/health insurance rules. The tri-agency statement of intention was made to the US District Court for the Eastern District of Texas. That court is hearing a request for a stay of the Biden Administration rule that limits the life of an STLD policy to four months. The case is American Assoc. of Ancillary Benefits v Secretary, US Dept of the Treasury. The tri-agencies also said they “do not intend to prioritize enforcement actions for violations” of the Biden-era STLD rule.

Prospects: The Eastern District of Texas federal district court has a reputation for its conservative rulings, although such rulings are not by any means guaranteed. But it seems at least possible if not likely that the court could grant the American Association of Ancillary Benefits’ request for a stay that would prevent the Biden four-month rule from taking effect.

NAIFA Staff Contacts: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org; or Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org.