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 new paragraph: (6) Short-term limited duration insurance The term short-term limited duration insurance means health insurance coverage provided under a contract with a health insurance issuer that— (A) has an expiration date specified in the contract that is less than 12 months after the original effective date of the contract; and (B) has a duration of not more than 3 years (taking into account renewals or extensions) 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 this section shall apply with respect to contracts for short-term limited duration insurance that take effect on or after the date of the enactment of this section.