Bill > HB273

This bill modifies the rules for when health insurance coverage becomes effective for individuals enrolling in a Small Business Health Options (SHOP) Exchange plan during specific special enrollment periods, which are times outside the regular enrollment period when people can sign up for health insurance due to certain life events. Specifically, for dependents added due to a court order, the bill allows the SHOP Exchange, if selected by the employee, to set the coverage start date as the first day of the month following the receipt of the plan selection, rather than the previous system that had different effective dates based on when the selection was received within the month. Similarly, for coverage changes due to divorce, legal separation, or the death of an employee or dependent, the bill simplifies the effective date to be the first day of the month following the receipt of the plan selection, removing the previous distinction based on whether the selection was received in the first half or second half of the month. The bill also clarifies that the SHOP Exchange must allow these special enrollment periods and that the employee must select the desired effective date. This legislation is set to take effect on October 1, 2026.