Colorado Legislative Council Staff
NO FISCAL IMPACT
December 26, 1997
Will Meyer (866-4976)
TITLE: CONCERNING EXEMPTION OF SHORT-TERM LIMITED DURATION HEALTH INSURANCE POLICIES FROM THE DEFINITION OF A “HEALTH BENEFIT PLAN” SUBJECT TO REGULATION BY THE COMMISSIONER OF INSURANCE.
Summary of Assessment
The provisions of this bill would exempt short-term limited duration health insurance policies from the definition of a “health benefit plan”, as regulated by the Commissioner of Insurance. The bill defines “short-term limited duration health insurance” as a limited duration student coverage policy or short-term limited duration coverage, of not more than six months, that meets other specified statutory criteria. The bill would require short-term insurance coverages to include a statement clearly setting forth, on advertising and on applications for coverage, that such policies have certain limitations. The bill would become effective upon signature of the Governor.
This bill would exempt short-term health insurance policies from providing credit for pre-existing condition limits required of policies under Section 10-8-102 and 10-8-602, C.R.S. The Division of Insurance would need to review a small number of additional, supplemental rate and form filings. The impact to the division’s workload would be minimal and could be absorbed within their existing resources. The provisions of the bill would not impact any other agency of the state, or unit of local government. Therefore, the bill is assessed as having no fiscal impact.