Short Term health insurance banned in Illinois – January 1 2025

ON July 10, 2024, Illinois Governor J.B. Pritzker signed HB2499 into law. That law known as Public Act 103-0649 rendered all Short Term policies illegal for sale in the state of Illinois as of January 1, 2025.

SHORT TERM HEALTH INSURANCE LIMITED TO 3 MONTHS IN DURATION NATIONWIDE AS OF 09/01/2024.

On March 28, 2024, HHS – Health & Human Services published this finalized rule authored by the former Biden administration. This rule limits all Short Term health insurance policies to no more than 3 months in duration. Worse yet, the rule prohibits the ability to purchase another 3 month policy from the same insurer after the first 3 month policy ends. This being the case, Short Term policies are no longer safe to purchase in any state after September 1, 2024 unless you need the coverage for only the last 3 months of a calendar year.

SHORT TERM HEALTH INSURANCE RESTORED TO 12, 24 & 36 MONTHS IN DURATION AS OF 08/07/2025.

On August 7, 2025, the U.S. Departments of Labor, HHS, and the U.S. Treasury announced in this memo that they will not prioritize enforcement of the aforementioned Biden finalized rule that limited Short Term Medical health insurance to a maximum of 4 months in duration as of September 1, 2024.

Following that memo, insurance companies like United Healthcare and Allstate Health Solutions will now once again sell Short Term health insurance policies with the aforementioned durations in states that allow Short Term health insurance. States that have banned all Short Term health insurance via separate legislation are Illinois, California, Connecticut, Hawaii, Massachusetts, Maine, New Jersey, and New York.

Mr. Tucker joined Dan Proft on Chicago’s Morning Answer Re: EMTALA, Cost Shifting & new Short Term rules – 08/14/2025

SHORT TERM HEALTH INSURANCE FROM UNITED HEALTHCARE AND ALLSTATE INSURANCE COMPANIES

If you live outside of the state of Illinois and need Short Term health insurance. United Healthcare’s Short Term policies are the most comprehensive non ACA-qualified Short Term health insurance policies available. Unlike other Short Term policies, these policies cover outpatient prescription drugs and your health plan deductible is waived for Urgent Care visits. United Healthcare also covers each insured member to $2,000,000. United Healthcare’s Short Term policies also include their national “Choice Plus” PPO network which includes in network access to Chicago’s Teaching hospitals such as Northwestern Memorial, University of Chicago, Rush university medical center and the Lurie Children’s hospital. To search for in network PPO providers within United Healthcare’s Choice Plus PPO please click here. For quotes and to apply online click the United Healthcare logo below.

The second best priced and best designed Short Term health insurance policies are available from Allstate Health Solutions. Their Enhanced Short Term policies cover each insured member up to $1,000,000. Allstate’s Short Term policies also include a national PPO network. That network is Aetna’s Open Choice PPO network. It also includes in network access to Chicago’s Teaching hospitals including Northwestern Memorial, University of Chicago medica center, Rush university medical center and Lurie Children’s hospital. You can search for in network providers PPO providers within Aetna’s Open Choice PPO network by clicking here. For quotes and to apply online click the Allstate Health Solutions logo below:

PLEASE NOTE: There are two other health insurance carriers offering Short Term health insurance policies in the state of Illinois. They are Independence American via IHC – Independence Holding Group and “Pivot Health” products via Companion Life insurance company. These carriers offer Indemnity policies on a Short Term basis. Indemnity policies do not include a PPO contract. These Indemnity policies pay reasonable and customary charges only. Without a PPO contract included with your policy, a medical provider can balance bill you for charges above the reasonable and customary amount. For this reason we do not recommend purchasing Short Term Indemnity policies from Independence American or Companion Life.

Please also note: Non ACA-qualified Short Term health insurance plans are not required to cover certain “Essential Health Benefits” that are covered with ACA-qualified plans. These benefits are:

1.) Maternity and newborn care
2.) Mental health and substance use disorder services
3.) ACA mandated Preventive care benefits. However, routine mammograms, birth control and cancer screenings ARE COVERED with non ACA-qualified Short Term health insurance policies in states like Illinois where these Preventive care benefits are mandated.
4.) Pediatric Services (including both oral care and vision care).

The ACA (Obamacare) Individual Mandate was REPEALED by congress on 12/20/17. The Tax Cuts and Jobs Act of 2017 zeroed out the Individual Mandate on January 1, 2019.