§ 27-20-59. Annual and lifetime limits.
(a) Annual limits.
(1) For plan or policy years beginning prior to January 1, 2014, for any individual, a
health insurance carrier and health benefit plan subject to the jurisdiction of the
commissioner under this chapter may establish an annual limit on the dollar amount
of benefits that are essential health benefits provided the restricted annual limit
is not less than the following:
(i) For a plan or policy year beginning after September 22, 2011, but before September
23, 2012 — one million two hundred fifty thousand dollars ($1,250,000); and
(ii) For a plan or policy year beginning after September 22, 2012, but before January 1,
2014 — two million dollars ($2,000,000).
(2) For plan or policy years beginning on or after January 1, 2014, a health insurance
carrier and health benefit plan shall not establish any annual limit on the dollar
amount of essential health benefits for any individual, except:
(i) A health flexible spending arrangement, as defined in section 106(c)(2) of the federal Internal Revenue Code, a medical savings account, as defined in section 220 of the federal Internal Revenue Code, and a health savings account, as defined in section 223 of the federal Internal Revenue Code, are not subject to the requirements of subsections (a)(1) and (a)(2) of this section;
and
(ii) The provisions of this subsection (a) shall not prevent a health insurance carrier
from placing annual dollar limits for any individual on specific covered benefits
that are not essential health benefits to the extent that such limits are otherwise
permitted under applicable federal law or the laws and regulations of this state.
(3) In determining whether an individual has received benefits that meet or exceed the
allowable limits, as provided in subsection (a)(1) of this section, a health insurance
carrier shall take into account only essential health benefits.
(b) Lifetime limits.(1) A health insurance carrier and health benefit plan offering group or individual health
insurance coverage shall not establish a lifetime limit on the dollar value of essential
health benefits for any individual.
(2) Notwithstanding subsection (b)(1) above, a health insurance carrier and health benefit
plan is not prohibited from placing lifetime dollar limits for any individual on specific
covered benefits that are not essential health benefits, as designated pursuant to
a state determination and in accordance with federal laws and regulations.
(c)(1) Except as provided in subsection (c)(2) of this section, this section applies to any
health insurance carrier providing coverage under an individual or group health plan.
(2)(i) The prohibition on lifetime limits applies to grandfathered health plans.
(ii) The prohibition and limits on annual limits apply to grandfathered health plans providing
group health insurance coverage, but the prohibition and limits on annual limits do
not apply to grandfathered health plans providing individual health insurance coverage.
(d) This section shall not apply to a plan or to policy years prior to January 1, 2014,
for which the Secretary of the U.S. Department of Health and Human Services issued
a waiver pursuant to 45 C.F.R. §â€‚147.126(d)(3). This section also shall not apply to insurance coverage providing benefits for:
(1) Hospital confinement indemnity; (2) Disability income; (3) Accident only; (4)
Long-term care; (5) Medicare supplement; (6) Limited benefit health; (7) Specified
disease indemnity; (8) Sickness or bodily injury or death by accident or both; and
(9) Other limited benefit policies.
(e) [Deleted by P.L. 2024, ch. 201, § 3 and P.L. 2024, ch. 202, § 3.]