California Senate Bill Would Outlaw Short-Term Health Insurance

California Senate Bill Would Outlaw Short-Term Health Insurance



California Senate Bill 910 (Hernandez), which was re-referred to Health Committee on March 14th, would prohibit any insurer from selling short-term health insurance in California.

“This bill, commencing January 1, 2019, would prohibit a health insurer from issuing, selling, renewing, or offering a short-term limited duration health insurance policy, as defined, for health care coverage in this state.”

“10123.61.

 (a) Commencing January 1, 2019, a health insurer shall not issue, amend, sell, renew, or offer a policy of short-term limited duration health insurance policy for health care coverage in this state.”

Some California residents use short-term health insurance in lieu of compliant but more expensive Obamacare coverage or as an interim coverage between compliant health plans.  

Within the last year or so we have seen two carriers terminate their short-term health offering in California.  HCC Tokio Marine dropped their plans in 2017, and Petersen International Underwriters (Lloyd’s of London) dropped their plans in February of this year.

I am only aware of one insurer selling short-term health in California right now, IHC.  



Dave





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