SB 1224 Summary

• Extends the maximum duration of short-term, limited duration health insurance policies from 6 months to 12 months, with optional extensions if total coverage does not exceed 365 days in any 365-day period.

• Changes short-term policies from non-renewable to potentially renewable, allowing insurers to offer multiple periods of coverage within the 365-day limit.

• Modifies preexisting condition coverage requirements, allowing (but not requiring) short-term policies to exclude preexisting conditions instead of mandating exclusion.

• Requires short-term policies to include emergency care, hospital services, physician services, laboratory services, and X-ray services, with descriptions prominently displayed on applications and coverage agreements.

• Establishes a 10% cap on short-term policy premiums relative to all individual health insurance premiums written by an insurer in Michigan, and requires annual reporting to the director on short-term and traditional individual health insurance premiums.