If you’re traveling from Illinois, understanding your health coverage options is more important than ever. As of January 1, 2025, Illinois residents can no longer purchase short-term health insurance (STLD) policies. This change affects those who relied on these plans for temporary coverage during transitions or extended trips. Here’s what you need to know:

• STLD Ban: Illinois has prohibited the sale of short-term health insurance, both directly and through out-of-state groups. Existing policies remain valid until their expiration but cannot be renewed.
• Alternative Options: Travelers can consider travel medical insurance for emergencies during trips, visitor insurance for international guests, or ACA-compliant plans for broader health coverage.
• Key Differences: Travel medical insurance is ideal for short trips abroad, while visitor insurance caters to international guests in the U.S. Both remain available despite the STLD ban.

For Illinois travelers, understanding these changes and exploring alternatives is crucial to avoid gaps in coverage while traveling. Travel medical insurance and other options can provide peace of mind for both domestic and international trips.

Illinois Short-Term Health Insurance Rules

Illinois Rules for Short-Term Plans

Starting January 1, 2025, insurance companies in Illinois will no longer be allowed to sell short-term limited duration (STLD) health insurance policies to residents. This ban applies not only to direct sales but also to policies sold through out-of-state groups or associations. The Illinois Department of Insurance implemented this measure after raising concerns about misleading marketing practices tied to these plans. Previously, Illinois capped these policies at six months and prohibited renewals altogether.

If you purchased an STLD policy before the 2025 deadline, your coverage will remain valid until its expiration date. However, once it ends, you won’t be able to renew or extend it, nor can you purchase a new STLD plan in Illinois. This change affects travelers who previously relied on these policies for extended trips, pushing them to seek alternative coverage options.

The state has also introduced a system for reporting violations. If an insurer offers an STLD plan, you can report it to the Illinois Department of Insurance by calling 866-445-5364 or emailing [email protected].

Federal regulations, effective September 1, 2024, further align with Illinois’ rules by restricting initial STLD coverage to a maximum of three months, with a one-month extension allowed. Additionally, insurers are prohibited from selling multiple STLD policies to the same individual within a 12-month period.

These regulatory changes emphasize the importance of finding alternative coverage options, which are discussed in the next section.

Other Coverage Options for Illinois Residents

With STLD policies off the table, Illinois residents still have other temporary coverage choices. Travel insurance and hospital indemnity insurance remain available, as they are not part of the ban. These options can provide short-term relief for those with specific needs.

For residents seeking health insurance outside the Affordable Care Act (ACA) open enrollment period, there are other avenues to consider. Special enrollment periods may be available if you experience qualifying life events, and Medicaid offers year-round enrollment for those who meet eligibility requirements. These ACA-compliant plans provide comprehensive coverage, including pre-existing conditions, specialist visits, and hospital stays – areas where STLD policies often fell short.

According to a 2023 report from the National Association of Insurance Commissioners, 235,775 people were covered by short-term health plans in 2022. Critics of the new restrictions argue that these limitations reduce consumer options.

"You’re taking away an option for consumers, and consumers need options. People who are above 400% of federal poverty level and need a plan, but can’t afford to pay that much money, they deserve an option."
– Ronnell Nolan, president and CEO of Health Agents for America

If you’re unsure about your next steps, Illinois health agents can guide you through the available alternatives, ensuring you find coverage that meets your needs without relying on now-banned short-term policies.

Travel Insurance Top Picks: Best Medical & Comprehensive Plans for All Countries

Coverage Options for Illinois Travelers

As of January 1, 2025, short-term health insurance will no longer be available to Illinois residents. If you’re planning to travel, it’s important to explore other coverage options that meet your needs.

Travel Medical Insurance

Travel medical insurance is designed to cover medical emergencies and healthcare expenses while you’re traveling. Given the high cost of medical care in the U.S., this type of coverage can be a lifesaver. For example, routine doctor visits can cost between $250 and $350, while emergency treatments often exceed $25,000. In more severe cases, such as an ICU stay following a stroke, costs can surpass $150,000.

These policies typically cover a range of services, including doctor visits, emergency room care, prescription medications, medical evacuation, and repatriation of remains. On average, travel medical insurance costs between $40 and $80, making it an affordable option for many travelers. Comprehensive plans often include access to preferred provider organization (PPO) networks, which help reduce out-of-pocket expenses. Additionally, many of these plans offer direct billing, so the insurer pays the provider directly, sparing you from upfront costs and reimbursement hassles.

If you’re hosting international guests, visitor insurance is another option to consider.

Visitor Insurance

Visitor insurance is tailored for international visitors traveling to the United States. If you’re an Illinois resident expecting family or friends from abroad, this coverage can help protect them from unexpected medical expenses during their stay.

Visitor insurance plans come in two main types: fixed benefit and comprehensive. Costs range from $20 to $191 per month, with some plans covering up to 100% of eligible expenses. This is especially important when considering that a single emergency room visit in Illinois averages $1,800, and hospital stays at nonprofit hospitals can cost around $2,886 per day. Without coverage, international visitors could face overwhelming medical bills.

Short-Term Health Insurance (If Applicable)

While short-term health insurance will no longer be available for new Illinois residents starting in 2025, existing policies purchased before January 1, 2025, will remain valid until they expire. Federal regulations limit these policies to a maximum duration of three months, and insurers are prohibited from selling multiple policies to the same individual within a 12-month period.

The Illinois Department of Insurance has clarified that this ban extends beyond direct sales:

"Beginning January 1, 2025, insurance companies conducting business in Illinois are prohibited from selling STLD policies to Illinois residents."

This restriction also applies to out-of-state groups or associations attempting to sell short-term policies to Illinois residents.

Coverage Options Comparison

Here’s a side-by-side look at the key features of these coverage options:

Feature	Travel Medical Insurance	Visitor Insurance	Short-Term Health Insurance
Primary Purpose	Medical emergencies during travel	Coverage for international visitors	Former gap coverage
Cost Range	$40–$80 average	$20–$191 per month	Not available for new IL residents
Coverage Duration	Trip duration	Length of visitor stay	Maximum 3 months (federal limit)
Pre-existing Conditions	Limited coverage; some plans cover acute onset	May cover acute onset conditions	Usually excluded
Provider Networks	Comprehensive plans offer PPO access	Varies by plan type	Varied by plan
Payment Method	Direct billing or reimbursement	Direct billing (for comprehensive plans)	Varied by plan
Availability for IL Residents	Available	Available	Prohibited after Jan 1, 2025

Each option serves a specific purpose. Travel medical insurance is ideal for covering emergencies during your trip, while visitor insurance is designed to protect international guests. When deciding, think about factors like trip length, planned activities, existing health conditions, and your budget. Be sure to carefully review the details of any policy to understand its limitations and exclusions before making a choice.

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How to Choose the Right Plan for Your Travel

With Illinois introducing new regulations that eliminate short-term policies, selecting the right travel insurance requires a careful evaluation of your needs and the available options.

Factors to Consider

Your destination plays a crucial role in determining the type of coverage you’ll need. For trips within the United States, your existing health insurance might provide some level of protection. However, keep in mind that programs like Medicare and Medicaid usually don’t cover medical expenses outside the country. For international travel, a dedicated travel medical insurance policy is essential since most domestic plans offer little to no coverage abroad.

The length of your trip also impacts the cost and type of coverage you’ll require. Extended travel or pre-existing conditions often call for policies that include broader coverage and specific provisions for those conditions.

Think about the activities you’ll engage in during your trip. High-risk pursuits like skiing or mountain climbing may require additional coverage – or might even be excluded entirely. Also, don’t focus solely on the premium cost. Consider deductibles, coinsurance, and out-of-pocket limits to get a full picture of your financial responsibilities.

Once you’ve assessed these factors, take the time to dive into the details of potential policies to ensure they align with your travel plans.

Review Policy Details

The Illinois Department of Insurance stresses the importance of carefully reviewing your travel insurance policy:

"Travel insurance policies have specific limitations and exclusions. When you look at a travel insurance policy, pay special attention to the fine print of the policy."

Check for coverage limits, exclusions, and how billing is handled. Many comprehensive plans include access to preferred provider organization (PPO) networks, which lower costs through negotiated rates. Policies with direct billing can save you from paying upfront and waiting for reimbursement later.

Be aware of common exclusions. These may include certain pre-existing conditions, high-risk activities, or specific treatments. For international travelers, it’s especially important to confirm whether the policy covers emergency medical evacuations, as these can be costly.

The claims process can differ between insurers. Some offer 24/7 assistance hotlines and direct billing to healthcare providers, while others require you to pay upfront and file for reimbursement afterward.

Get Expert Help from Illinois Health Agents

After reviewing your options, seeking professional guidance can help clarify any uncertainties. Illinois Health Agents specializes in providing tailored advice to match your specific travel needs.

Their brokers are well-versed in travel medical insurance and visitor insurance options for Illinois residents. With access to a wide range of top-rated insurance carriers, they can compare policies based on your destination, travel length, and budget.

Illinois Health Agents also offer consultations to review your existing health coverage and identify any gaps that travel insurance can fill. They explain policy terms in plain language, making it easier for you to make an informed decision.

With their expertise in navigating Illinois-specific regulations, these professionals can help you stay ahead of state and federal insurance changes. For travelers in Illinois, especially those affected by the new short-term insurance restrictions, working with knowledgeable brokers can mean the difference between adequate coverage and costly surprises while traveling.

Resources and Support for Illinois Travelers

Navigating travel insurance can feel like a daunting task, especially with Illinois’s recent changes to short-term health insurance regulations. Thankfully, there are several resources designed to help you make informed decisions about your travel coverage. Below are some key tools and support systems available to Illinois travelers.

State Insurance Department Resources

The Illinois Department of Insurance (IDOI) is your go-to resource for understanding travel insurance regulations and consumer protections in the state. Their mission is straightforward:

"To protect consumers by providing assistance and information, by efficiently regulating the insurance industry’s market behavior and financial solvency, and by fostering a competitive insurance marketplace."

The IDOI offers detailed guidance on the short-term insurance changes that took effect on January 1, 2025. Their website features frequently asked questions about excepted benefit policies and the Illinois STLD law, helping travelers navigate their options.

If you need to report prohibited policies or have questions, you can contact the IDOI at 866-445-5364 or email [email protected]. Complaints can also be filed online or submitted via mail or fax using forms available on their website.

Additionally, the Office of Consumer Health Insurance (OCHI) is available to answer questions about health insurance, assist with policy appeals, and provide resources for uninsured individuals through their "Uninsured Ombudsman Program".

For broader health insurance options, the IDOI recommends exploring Get Covered Illinois and their Shop/Enroll platform. These resources can help you identify alternatives to short-term coverage, ensuring you understand your options before embarking on your trip.

Illinois Health Agents as a Trusted Resource

In addition to state resources, expert insurance brokers can provide personalized guidance tailored to your needs. With the recent changes in Illinois regulations, the expertise of brokers like Illinois Health Agents has become even more valuable. These professionals specialize in understanding Illinois-specific insurance rules and work with multiple carriers to find the best travel protection for you.

Illinois Health Agents are well-versed in the impact of the short-term insurance ban and can guide you toward alternative coverage options. They offer access to various plans, including travel medical insurance, visitor insurance, and comprehensive health policies from top-rated providers. Their recommendations take into account your destination, trip length, and budget to ensure you get the right protection.

Through personalized consultations, Illinois Health Agents can review your current health coverage and identify gaps that travel insurance might fill. They explain policy terms in plain language, making it easier to understand coverage limits, exclusions, and claims processes.

For Illinois residents navigating the new short-term insurance restrictions, Illinois Health Agents provide a crucial service. They stay up-to-date on state and federal insurance changes, ensuring their advice aligns with the latest regulations while addressing your specific travel needs.

Whether you’re traveling within the U.S. and relying on your existing insurance or heading overseas where dedicated travel medical coverage is essential, Illinois Health Agents can help you evaluate your options and choose the right plan for your journey.

Conclusion

Starting January 1, 2025, Illinois residents will no longer be able to purchase short-term, limited-duration health insurance policies. This significant shift in the insurance market means travelers from Illinois need to explore other coverage options to ensure they’re protected while on the move. Understanding these alternatives is essential to avoid unexpected gaps in coverage.

The elimination of short-term plans is part of Illinois’s effort to safeguard consumers. As State Senator Laura Fine (D-Glenview) pointed out:

"As we strive to put Illinois at the forefront of health care, we cannot afford to leave out consumers who depend on their health insurance plans to meet their medical needs."

This regulatory change aims to reduce the financial risks tied to the limited coverage often associated with short-term plans.

For Illinois travelers, the focus now turns to other options like ACA Marketplace plans, Medicaid, or travel medical insurance. These alternatives offer more comprehensive coverage, including benefits like protection for pre-existing conditions and capped out-of-pocket expenses.

To navigate these changes, working with expert brokers such as Illinois Health Agents can be invaluable. These professionals stay informed about Illinois-specific regulations and partner with top-rated carriers to match you with a plan tailored to your destination, trip duration, and budget. Taking the time to review your needs and consult with experts ensures you’re not caught without proper coverage.

Before traveling, assess your current insurance, identify any coverage gaps, and determine if you qualify for special enrollment periods. With the right guidance and preparation, Illinois travelers can enjoy peace of mind knowing their health coverage aligns with both their personal needs and state requirements.

FAQs

What’s the difference between travel medical insurance and visitor insurance for Illinois travelers?

While travel medical insurance and visitor insurance might appear alike, they cater to different needs based on the traveler’s situation.

Travel medical insurance is meant for residents heading overseas. It typically covers unexpected medical emergencies, hospital stays, and outpatient care during international trips. This type of insurance provides broad protection for most travelers, no matter their nationality.

In contrast, visitor insurance is specifically designed for international visitors coming to the U.S. It offers short-term health coverage for expenses like doctor visits, hospital stays, or urgent care during their stay.

Both options help shield travelers from unexpected medical expenses, but choosing the right one depends on whether you’re venturing abroad or welcoming visitors to the U.S.

What are the best health coverage options for Illinois residents after short-term health insurance plans are no longer available?

Starting January 1, 2025, Illinois will phase out short-term health insurance plans. If you’re a resident searching for affordable alternatives, you might want to explore Medicaid, ACA marketplace plans, or employer-sponsored insurance. These choices offer broad coverage to help keep you protected.

If Medicaid or employer-sponsored plans aren’t an option for you, consider looking into subsidized or low-cost private insurance plans. Partnering with a reliable local agency, like Illinois Health Agents, can make the process easier by helping you find a plan that fits both your healthcare needs and your budget.

How can Illinois travelers make sure they have the right health coverage for international trips?

Before heading overseas, Illinois residents should verify whether their current health insurance provides coverage for medical expenses abroad. Many U.S.-based insurance plans don’t extend to international care, especially when it comes to emergencies or hospital stays. If your plan lacks this coverage, it’s worth looking into a travel health insurance policy. These policies often include important benefits like emergency medical evacuation, hospital expenses, and repatriation services.

For tailored advice, Illinois travelers can reach out to local resources like the Illinois Department of Insurance to explore temporary health insurance options. Additionally, if you’re part of a study abroad program or a specialized travel group, check if you’re required to enroll in a specific international health plan. Taking these precautions can help you stay ready for any unexpected health issues during your trip.