Bill Text: VA SB404 | 2020 | Regular Session | Engrossed
Bill Title: Health insurance; short-term limited-duration medical plans, definitions, effective date.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2020-04-10 - Governor: Acts of Assembly Chapter text (CHAP1077) [SB404 Detail]
Download: Virginia-2020-SB404-Engrossed.html
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. ]
