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2020 SESSION

20102773D
SENATE BILL NO. 404
Senate Amendments in [ ] – February 4, 2020
A BILL to amend the Code of Virginia by adding in Article 1 of Chapter 34 of Title 38.2 a section numbered 38.2-3407.21, relating to health insurance; short-term limited-duration medical plans.
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Patrons Prior to Engrossment--Senator Hashmi; Delegate: Rasoul
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Referred to Committee on Commerce and Labor
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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Article 1 of Chapter 34 of Title 38.2 a section numbered 38.2-3407.21 as follows:

§ 38.2-3407.21. Short-term limited-duration medical plans.

A. As used in this section:

"Carrier" means any entity that is authorized to sell, offer, or provide a short-term limited-duration medical plan.

"Covered person" means a policyholder, subscriber, enrollee, participant, or other individual who is entitled to health care services provided, arranged for, paid for, or reimbursed pursuant to a short-term limited-duration medical plan.

"PPACA" has the meaning ascribed thereto in § 38.2-3438.

"Short-term limited-duration medical plan" has the same meaning as short-term limited-duration insurance as used in 26 C.F.R. § 54.9801-2, 29 C.F.R. § 2590.701-2 and 45 C.F.R. § 144.103 [ except as described in subsection B ] .

B. No carrier shall issue, deliver, issue for delivery, reissue, or extend in the Commonwealth on and after July 1,  [ 2020 2021 ] , any short-term limited-duration medical plan:

1. With a duration that exceeds three months;

2. That can be renewed or extended  [ if the renewal or extension would result in such coverage being effective for more than six months ] [ , notwithstanding § 38.2-3514.2 ] ; or

3. If the issuance, delivery, reissuance, or extension of the short-term limited-duration medical plan would result in a covered person being covered by a short-term limited-duration medical plan for more than [ three  six ] months in any 12-month period.

C. No carrier shall issue a short-term limited-duration medical plan during an annual open enrollment period.

D.  [ The requirements of the PPACA that require carriers to rebate premiums to covered persons when the medical loss ratio for health benefit plans exceeds certain levels shall apply to short-term limited-duration medical plans issued in the Commonwealth except that each carrier shall rebate premiums from its issuance of short-term limited-duration medical plans to the plans' policyholders if, and to the extent that, the medical loss ratio for the short-term limited-duration medical plans is less than 85 percent. ] [Any certificate delivered in the Commonwealth that is issued under a short-term limited-duration medical plan in any other jurisdiction shall comply with the requirements of this section. ]