An Act To Restore Short-term Health Insurance
Maine Legislature, Session 130, LD 0424
Committee: Health Coverage, Insurance and Financial Services
Sponsors: BENNETT
Amends: 24-A MRSA §2849-B

Legislative Document
No. 424
S.P. 172
In Senate, February 11, 2021
An Act To Restore Short-term Health Insurance
Received by the Secretary of the Senate on February 9, 2021.  Referred to the Committee 
on Health Coverage, Insurance and Financial Services pursuant to Joint Rule 308.2 and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BENNETT of Oxford.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §2849-B, sub-§1, as amended by PL 2019, c. 330, §2, is 
further amended to read:
1.  Policies subject to this section.  This section applies to all individual, group and 
blanket medical insurance policies except hospital indemnity, specified accident, specified 
disease, long-term care and short-term, limited-duration policies issued by insurers or 
health maintenance organizations.  For purposes of this section, a short-term, limited-
duration policy is an individual, nonrenewable policy issued for a term that does not extend 
beyond December 31st of the calendar year in which the policy is issued is less than 12 
months.  This section does not apply to Medicare supplement policies as defined in section 
5001, subsection 4.
Sec. 2.  24-A MRSA §2849-B, sub-§8, ¶B, as amended by PL 2019, c. 330, §4, is 
further amended to read:
B.  An insurer or the insurer's agent or broker may not issue a short-term, 
limited‑duration policy that replaces a prior short-term, limited‑duration policy as long 
as if the combined term of the new policy and all prior successive policies does not 
exceed exceeds 24 months and the individual has not been covered under any prior 
short-term, limited-duration policy for at least 12 months.  All individuals making an 
application for coverage under a short-term, limited‑duration policy must disclose any 
prior coverage under a short-term, limited‑duration policy and the policy duration.
Sec. 3.  24-A MRSA §2849-B, sub-§8, ¶C, as enacted by PL 2019, c. 330, §4, is 
repealed.
Sec. 4.  24-A MRSA §2849-B, sub-§8, ¶D, as enacted by PL 2019, c. 330, §4, is 
repealed.
Sec. 5.  Application.  The requirements of this Act apply to all short-term, limited 
duration health insurance policies, contracts and certificates executed, delivered, issued for 
delivery, continued or renewed in this State on or after January 1, 2022.  For purposes of 
this Act, all contracts are deemed to be renewed no later than the next yearly anniversary 
of the contract date.
SUMMARY
This bill reverses several changes regulating short-term, limited-duration health 
insurance policies enacted in Public Law 2019, chapter 330.  The bill authorizes the 
issuance of a policy for up to 12 months and eliminates the restriction terminating a 
short-term, limited-duration policy on December 31st of the year in which it is issued.  The 
bill removes the prohibition on selling a short-term, limited-duration policy to anyone who 
has had prior short-term policy coverage in the last 12 months and removes the combined 
cap on coverage of 24 months.  The bill also removes the requirement that these policies 
may be sold only through an in-person encounter and the provision prohibiting the sale of 
these policies during any open enrollment period.
The changes made in the bill apply to short-term, limited-duration health insurance 
policies, contracts and certificates issued or renewed in this State on or after January 1, 
2022.