Having issues with paying hefty health insurance plans? Or missed open enrollment for ACA compliant health insurance? Do not worry. An alternative, Short Term Insurance is here.
What is Short Term Insurance?
Short Term Insurance, also called temporary health insurance or Term health Insurance or Short Term Health Insurance, is the loophole to address the gaps in coverage. It is a type of health insurance with low premium and low coverage plans.
To limit the usage of short term insurance, legislative assemblies have set limitations in the year of 2017 in short term plans. The goal was to prevent short term health insurance and insure the customers for long term through the employer or enrolling through Affordable Care Act. These short term plans were limited to three months of duration.
Prior 2018, short term health insurance plans would also net you a fine, as they did not meet the requirements formed by ACA or Obamacare. Thus, majority of insurance provider dropped short term plans as the state restrictions declared them illegal or they were not bringing enough revenue to the providers.
After Trump government took over, there was a change. On 2nd Oct, 2018, they uplifted the individual mandate requirement of Affordable Care Act and stretched the duration of short term plans to 364 days, which was 90 days earlier. Although these short term health insurance plan are ubiquitous, they are available in some states of USA.
It is the coverage provided for finite period of time. Usually, it offers coverage annually which can be extended twice. This implies you can extend short term health insurance for three years.
Short term health insurance shields you with limited protections. It pays off for services like illness, accidents, intensive care or surgical services. And, hence does not cover diagnosis or HIPPA planes.
The application process of short term health insurance is less complex than that of standard one. It usually takes effect within a day after the application is received. You can also choose the date according to your convenience.
Short term health insurance is not ACA compliant as it does not cover Minimum essential coverage as defined by Affordable Care Act. These plans are not even qualified for premium tax credits and cost sharing reductions.
What makes us say that Short term Insurance will work for you?
If you are looking for temporary medical coverage plans, then yes, short term insurance will definitely work for you.
It is useful when:
- You have missed Open Enrollment deadline for Affordable Care Act insurance plans.
- You are in a waiting period to enroll for standard health insurance plans.
- You are in between jobs, i.e. looking for a new job or you are a part-time or temporary worker at some place. Due to tight budget management if you are not able to afford major medical insurance plan then purchasing a short term health insurance is the best option.
- If you are an international student or new immigrant to the USA.
- You are a US citizen returning after a long time.
- You are a young retire and waiting to be eligible for Medicare coverage.
- Employees waiting for their employer to provide them long term health insurance.
- Obamacare/ACA healthcare plans are not available in area or are not accepted by physicians or hospitals.
Major Benefits of Short Term Health Insurance :
Short term insurance plans are not available in every state of the United States of America. In present, it is illegal in
- New Jersey
- New York
Short term plans cover many things. Here are some advantages on enrolling for Short Term Health Insurance:
- Available for a year with two renewals (in total for three years)
- Apply at any time of year
- Pay low premiums
- Many plans provide a drug discount card
- Affordable as compared to individual insurance and COBRA
- Limited coverage
- Better than being uninsured
- Annual and Lifetime caps on coverage possible
- No need of basic coverage
- High out-of-pockets cost
Top Companies providing Short Term medical insurance, USA:
- HealthInsurance.net: This is an easily navigable online platform which offers free quotes from well-known health insurance company. It grants you access to compare variety of quotes and gets assistance from their agents as well.
- Healthcare.com: It is another online insurance company. The plans here are customizable and flexible which is nearly available in every state.
- National General: They consist of many options of plan customization. Additionally, to short term health insurance plans they also offers auto, homeowners, dental, and small business insurance among others.
- The IHC Group: IHC Group offers plans in 23 states. The applications are processed within a day of submission. The short term insurance plans are available online and the plan starts from $51. The primary advantage here is you may keep your current health care provider.
- United Healthcare: As the study says, United Healthcare is the most expensive provider in the United States. However, it has insurance for every age group and easy to use online tools.
- Aetna: They provide least expensive plans as compared to other providers.
- Kaiser Permanente: They have their own sets of facilities and doctors. Kaiser covers eight states. Its premium and breadth of plans are, on average and cheaper as compared to other agencies which make it a compelling option.
- Humana: It is available in western, Midwestern or southern states of the United States. It is considered among the best because its premiums, variety of available plans and additional wellness programs.
- Blue Cross Blue Shield: They provide a diverse variety of insurance plans at prices that fall within the average range of other insurance providers. With 37 companies across the United States, BCBS has variety of plans available on average. It is a group of number of independent agencies, so the priority of your care depends on the company servicing your area.
Short term insurance plan varies place to place. But the major fundamental is pay less every month and get higher deductibles. Moreover, opt for prescriptive plans I consideration. The most important thing to remember when shopping for a short-term plan is that temporary solutions which are not intended for long-term health considerations.