IA| Iowa Insurance Division Bulletin 25-05 outlines the current regulatory position on short-term limited duration (STLD) health insurance plans in Iowa following recent federal enforcement changes. Iowa will continue to allow STLD plans for up to three years, consistent with state regulations, and carriers must follow existing consumer protection standards.
Key Points:
- Iowa permits STLD plans for up to 36 months total, with initial terms up to 12 months and renewals/extensions allowed within the three-year limit.
- Federal enforcement of stricter four-month duration limits announced in 2024 will not be prioritized against states following their own law; Iowa will enforce its regulations.
- Iowa’s STLD regulations have mandated consumer protections since 2019, developed with carriers and consumer groups, including guaranteed renewability and certain benefits for plans over 12 months.
- Effective immediately, authorized carriers may offer STLD plans consistent with Iowa law, but those without prior Division approval must first file through the SERFF system.
- Consumers and agents are advised to consult licensed professionals and the Iowa Consumer Advocate for guidance before choosing or renewing STLD coverage.
