On August 7, 2025, the Departments of Treasury, Labor, and Health and Human Services (the “Departments”) issued non-enforcement relief for short-term limited duration insurance ("STLDI").  The Departments issued this relief in response to Executive Order ("EO") 14219, which directed Federal agencies to review regulations to identify those that may impose undue burdens on small businesses or significant costs upon private parties that are not outweighed by public benefits.  The non-enforcement relief states that the Departments intend to exercise their authority under the Code, ERISA, and the Public Health Service Act to undertake notice-and-comment rulemaking to consider the need for amendments to the definition of STLDI.  Until future rulemaking is issued and applicable, the Departments do not intend to prioritize enforcement actions for violations related to failing to meet the definition of STLDI, including the notice provision.  HHS encourages States to adopt a similar approach to enforcement. 

As a reminder, the Departments issued final regulations on April 3, 2024 that made four main changes to STLDI, effective for policies sold on or after September 1, 2024:

1. The initial contract term must be no more than three months;
2. Taking into account renewals or extensions, the maximum STLDI coverage period must be no more than four months;
3. A renewal or extension includes STLDI sold by the same issuer, or any issuer that is a member of the same controlled group, to the same policyholder within a 12-month period; and
4. Updates the language of the required notice to help consumers better distinguish between comprehensive coverage and STLDI and get information on their health coverage options. The notice must be prominently displayed on the first page of the policy, certificate, or contract of insurance, including for renewals and extensions, and included in any marketing, application, and enrollment (or reenrollment) materials.