Insurance Commissioner working to provide short-term health policy options to Mississippians

• “It’s a good option for people that don’t want to buy from Blue Cross Blue Shield or somebody that sells an individual policy that’s extremely high,” Commissioner Mike Chaney said.

During the 2026 legislative session, State Rep. Hank Zuber (R) brought forward HB 605 in an effort to create a state health insurance exchange within two years. The bill died in committee. 

Now, Insurance Commissioner Mike Chaney (R) is working on a plan to help small employers and residents of Mississippi find health insurance coverage that he expects to be cheaper than purchasing individual policies. 

Chaney’s office is working toward a private exchange that does not take subsidies but instead provides residents with a short-term duration policy, usually for six months, or up to one day less than one year. 

Using short-term duration policies provides a loophole that allows Mississippians to find a level of affordable coverage.

“It’s a loophole, you’re right, but it’s a loophole that benefits the consumer,” Chaney said. “If Washington would get off their ‘you know whats’ we could fix the problem.”

Commissioner Chaney would like to see the federal government allow the use of associated health plans, which would allow Realtors, members of a chamber of commerce, and others currently without coverage to have common policies.

Instead, by using the short-term policies, residents could see costs significantly less than open market policies.  

“It’s about a third of what it would cost you in the open market,” Chaney described. 

He used one example of a 50-year-old resident seeking an individual policy. Such a policy under Blue Cross would cost about $1,500 a month, he estimated. 

“You can buy that same policy for around $600 to $700,” said Chaney of the short-term policy. “It’s a good option for people that don’t want to buy from Blue Cross Blue Shield or somebody that sells an individual policy that’s extremely high.”

Upwards of five companies have expressed interest in providing these products to Mississippians. Additionally, the commissioner expects a limited amount of underwriting and the yearly out-of-pocket expense to be low, possibly in the range of $2,200.

Even though it would be a short-term policy, Chaney also expects residents to have the ability to roll the policies over every six months. He added that approval from the Centers for Medicare and Medicaid Services (CMS) to provide such an option has already been secured. 

Under this plan, small employers could be able to provide employees with money they can use to buy their own plans. However, that route might be tricky because it could involve ERISA (Employee Retirement Income Security Act) plans. 

By providing an alternate route to insure Mississippi’s workforce, employers will be able to offer perks that most employees want these days, that being health coverage.

“It gives a small employer a different option from having to have a self-insured shared plan, which they cannot afford,” said Chaney. 

He expects the plans to offer pharmaceutical benefits as well, but on a more restricted basis. For instance, policyholders would be restricted to the generic versions of prescription medications.

Overall, Chaney believes this is the best route for the near future.  

“I don’t see us establishing a state-based exchange, although we keep up with the current conditions,” Chaney said, adding that he intends to attend an upcoming conference in Georgia that will provide information about that state’s program.

While CMS has told the commissioner he could implement a state-based exchange without the governor’s approval, he has two reasons for not using that route.

“I’ve told them I won’t bypass the governor, number one. And number two, I’m not sure we want to do that because it takes a lot of work to do a state-based exchange under the federal guidelines, and the consumer is going to pay for it. I’m not a big fan of those plans because I don’t think they are designed correctly,” Chaney said. “The out-of-pocket expense is too high for the average person.”

Chaney expects the short-term option to be available starting in September.