Virginia SB 404: Health insurance; short-term limited-duration medical plans, definitions, effective date.

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Bill Tracking - 2020 session > Legislation 

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2020 SESSION

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CHAPTER 1077 

An Act 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. 

[S 404] 

Approved April 10, 2020 

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, 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 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. 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.

2. That the provisions of this act shall become effective on 
July 1, 2021.