I wanted to share with you some important information that just came in from the Illinois Department of Insurance. We all know that staying ahead of regulatory changes isn’t just part of our job – it’s how we protect our customers and make sure they get the best advice possible.
Here’s what it looks like: On August 7, the department released Bulletin 2024-15, and it has big implications for anyone dealing with short-term, limited-duration insurance and non-coordinated, fixed-compensation, excepted benefits. If you work with these plans, listen up—this is important.
From 1 January 2025 STLDI plans are banned in Illinois. That’s right – these plans are being eliminated and we have a responsibility to ensure our customers are not left behind. The department is clear about this: we must notify all currently enrolled and any new customers considering these plans.
Your customers should be aware that this coverage is not considered “minimum basic coverage” under federal law.
Translation?
Losing this coverage does not trigger a special enrollment period. If your customers do not act during the regular open enrollment period, they could end up with no coverage at all.
It’s up to you to make sure your clients understand the risks. STLDI plans don’t offer the same protection as comprehensive health insurance, which is why it’s so important that you help them make smart decisions now, especially with open enrollment for 2025 just around the corner (November 1, 2024 – January 15, 2025).
What you need to do:
- Communicate now: Speak to any client who has or is considering an STLDI plan and let them know that this coverage will soon cease to apply and they will no longer have the protection that comprehensive health insurance provides.
- Inform and guide: That’s where you come in and do what you do best. Educate your customers. Make sure they understand the risks associated with holding onto an STLDI plan while the clock is ticking. Encourage them to get informed early and take advantage of the upcoming open enrollment period for 2025. It begins November 1 and runs through January 15, 2025. This is their window of opportunity to secure comprehensive coverage and avoid any gaps.
Your role is critical. As an advisor, you are on the front lines. Your clients are trusting you to guide them through these changes and it’s up to you to make sure they are protected. Don’t wait until the last minute.
You can ensure your customers are fully informed and can easily switch to a plan that has complete coverage. You have the knowledge and it’s your job to use it.
Take a few minutes to review Bulletin 2024-15, familiarize yourself with the details, and engage with your customers. This is about more than just compliance—it’s about doing what you do best: putting your customers’ needs first.
Let’s make sure no one is left behind.
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