Mississippi's Short-Term Health Insurance Plan: A Viable Alternative

During the 2026 legislative session, State Rep. Hank Zuber introduced HB 605 to establish a state health insurance exchange within two years, but the bill did not advance beyond committee deliberations. In response, Mississippi Insurance Commissioner Mike Chaney is developing a plan to aid small employers and residents in obtaining more affordable health insurance than traditional individual policies.

Chaney is focusing on creating a private exchange offering short-term duration policies that can last up to just under one year. These policies do not rely on subsidies and provide a legal means for Mississippians to access affordable coverage. Chaney, acknowledging the strategy, pointed out its consumer benefits despite being a workaround. He mentioned his desire for federal authorization of associated health plans to enable coverage sharing among groups like Realtors and chamber of commerce members.

This short-term insurance strategy could substantially reduce costs compared to marketplace policies, potentially lowering premiums to about a third of open market prices. Chaney cited an example of a 50-year-old purchasing a Blue Cross individual policy for approximately $1,500 monthly, which could be reduced to between $600 and $700 with a short-term plan.

Several insurers have shown interest in offering these plans in Mississippi. These policies are expected to involve limited underwriting and lower annual out-of-pocket expenses, which might be as low as $2,200. Though short-term, these policies could be rolled over every six months, and Chaney reports having already secured approval from the Centers for Medicare and Medicaid Services (CMS) for this approach.

Small employers may have the option of providing funds for employees to purchase their coverage, though this involves potential complexities with ERISA plans. The initiative could allow businesses to offer desirable health benefits without resorting to unaffordable self-insured plans. Chaney anticipates that these plans will include pharmaceuticals, albeit restricting policyholders to generic drug options.

Chaney believes this approach is the most viable for the immediate future and does not foresee establishing a state-based exchange. He emphasized his preference for alternatives to federal guidelines for such exchanges due to their complexity and financial burden on consumers. Nevertheless, Chaney remains informed about developments, as evidenced by his participation in an upcoming conference on Georgia's program.

The expected availability of these short-term policies is set for September, providing a timely option for individuals and small businesses seeking cost-effective health coverage solutions.