How Are Short-Term Medical Plans Different Than Obamacare Plans?
Short-Term Medical plans are an Off-Exchange product that can help protect you if you find yourself without health insurance. These plans are designed to provide you with coverage for unexpected illness, injuries and accidents. If you qualify, you can receive coverage as quickly as the day after applying. So how do these plans differ from Obamacare plans?
- There is no enrollment period- unlike the ACA plans, Short-Term Medical plans are available year-round
- You must qualify for these plans on your health- pre-existing conditions are not covered
- There are coverage limits, typically $1,000,000 million depending on the carrier
- Deductibles reset for each policy period, which is usually 90 days
- Supplemental policies such as a fixed indemnity plan can be added for increased protection
- Consecutive terms are available for coverage up to one year
These Plans May Be A Good Fit For:
- Students or recent graduates
- Nursing or Allied Health Students
- When you turn 26 and are no longer eligible under your parent’s plan
- When you’re between jobs
- When you’re waiting for employer benefits to begin
Short-Term Medical plans include coverage for doctor office visits (for illness and injury), inpatient and outpatient procedures, emergency services and more.
- Flexible Coverage Periods – Coverage can be purchased for periods between 30 and 90 days in length
- Multiple Coverage Options – Plans offer a wide range of deductible and co-insurance levels to get affordable coverage.
- Network Savings – You will have access to a large network of doctors, whether you are at home or traveling. In fact, some of your doctors may already be in our network. Remember that you will save more when visiting a network provider, but you’re still covered for most services if you choose to visit a non-network provider. Unlike ACA plans, Short-Term Medical Plans are not subject to an enrollment period, as they are available year-round.
The ACA and Minimum Essential Coverage (MEC)
Much has been written about how short-term health plans should/ should not be considered major medical coverage. These plans are not required to have minimum essential coverage and therefore do not cover the sames things as ACA plans do. You can however, add MEC to your short-term plan that gives you and your family access to 100% covered preventive screenings, counseling and other services for about $70/mo. per person. To learn more, click here.
Short-Term Medical plans are evolving as the healthcare system changes and represent significant cost savings when compared to exchange plans. Plans are currently available for up to 360 days as the previous limit of 3 month terms was extended last October. This spring, we will see a new iteration of short-term plans that feature preventive services with the option to renew for up to 3 years. The plans will not be required to cover pre-existing conditions, which is why the marketplace(Obamacare) insurance plans still have an important place.
Contact us today to learn more about short-term medical plans in your area.