In June, Governor Kelly Ayotte signed an NFIB-backed bill that will expand affordable health coverage options for Granite Staters.

Starting January 1, 2027, Senate Bill 607 eliminates outdated restrictions and allows individuals and families to purchase lower cost “short-term” health plans for a term of up to one year and renew the policy for an additional two years.

As rising healthcare costs continue to drive up insurance premiums, these plans give small business owners, workers, and all consumers more affordable coverage options.

SB 607 received unanimous support during the committee process and passed the New Hampshire House and Senate without objection.

NFIB NH is grateful for Gov. Ayotte’s support and to the sponsors of SB 607: Sen. Dan Innis (Bradford – prime sponsor), Sen. Tim McGough (Merrimack), Rep. Brian Labrie (Bedford), Rep. Katelyn Kuttab (Windham), and Rep. Julie Miles (Merrimack).

What are Short-Term Health Plans? Formally known as short-term limited duration (STLD) plans, short-term plans are affordable bridge options for people who are priced out of expensive comprehensive health insurance plans or who want an alternative to traditional health insurance arrangements.

Short-term plans allow people to customize their coverage by selecting deductibles, out-of-pocket levels, and benefit sets that differ from what is required in Affordable Care Act-regulated plans. As a result, short-term plan premiums can be as much as 75% less than comprehensive plans.

They can also be utilized alongside cash-based Direct Primary Care (DPC) Arrangements, Health Savings Accounts, and some Health Reimbursement Arrangements to create more affordable, flexible, and consumer-controlled healthcare.

States with more relaxed short-term plan limits have been found to have healthier commercial health insurance markets with more insurer options. Greater access to affordable short-term plans creates competition that helps keep the cost of traditional health plans in check and creates a shorter bridge back to purchasing comprehensive plans for consumers who are temporarily priced out.

Short-Term Plans Deliver Significant Savings. While not the right fit for everyone, short-term plans can save people thousands of dollars per year.

For instance, 40-year-old woman (non-smoker) shopping for health insurance in Hillsborough County will see options like these:

Traditional Health Insurance Plan: $443/month for a silver plan (70/30 coinsurance) with a $5,000 deductible, $9,000 out of pocket maximum, and no coverage limit.

Short-Term Plan: $166/month for a silver plan (70/30 coinsurance) with a $7,500 deductible, $10,000 out of pocket maximum, and $1 million in coverage. The cost for this plan drops to $126/month for a $15,000 deductible or increases to $269/month for a $2,500 deductible.

That’s a difference of $3,300 per year and nearly $10,000 over the three-year life span of the short-term plan.

Why Was This Bill Necessary? Since 1995, New Hampshire has restricted the purchase of short-term plans to six months or less and prohibited consumers from renewing or extending the coverage.

The healthcare landscape has changed significantly since then and the state’s rules have not kept up. Those outdated restrictions deprived consumers of badly needed affordable options, especially those priced out of the traditional insurance market or who were locked out of coverage due to the ACA’s limited enrollment periods.

This reform was also needed because consumers with private insurance coverage faced substantial premium increases for 2026. Rising healthcare costs will likely continue to drive up the cost of health insurance, meaning more consumers will be looking for affordable options in future years.

SB 607 also requires insurance companies to notify consumers of short-term plan limitations such as lifetime benefit caps, differences in prescription drug benefits, and coverage for chronic health conditions. This ensures that New Hampshire consumers are fully informed before making their coverage decision.