Is a Short-Term Health Care Plan Right for You?

Today there are 2.2 million people trapped in what is known as the coverage gap. These consumers live in 16 states that have not expanded Medicaid and have income just above the cutoff to be eligible for the traditional form of the program, but still too low to be able to afford a health insurance plan without affecting the family’s finances.

Although the insurance plans sold on the marketplace insurance sites established by the Patient Protection and Affordable Care Act (ACA) offer subsidies that help to pay for premiums (the monthly payment for having health insurance), it is often times not enough.

• What is a short-term health plan?

Short-term health care plans emerged as an alternative to having health care coverage without having to spend a lot of money each month. But they are not health insurance.

Short-term health insurance generally offers a more simplified benefits packages, which includes services a healthy person would need in the event of an illness or accident, including coverage for doctor’s visits, hospitalizations, x-rays and other treatments.

You can purchase short-term health plans at any time, meaning that it’s not necessary to wait for an open enrollment period to sign up.

A healthy family can purchase a short-term health plan that will become effective the day after it is purchased.

All individuals living in the United States can purchase one, regardless of their immigration status. This is the biggest difference between these plans and Obamacare.

Below are some possible situations in which a short-term health care plan might be right for you:

• You are unable to purchase a marketplace insurance plan under ACA due to your immigration status.

• You missed the annual open enrollment period for Obamacare plans.
• You are subject to a waiting period to be able to enroll in another main medical insurance plan.
• If you are between jobs, partially employed, employed part-time, or are looking for an option that is less expensive than COBRA (insurance provided by the government when you lost health care coverage).
• You are a student, a recent graduate, or are not eligible  to be on your parents’ health care plan.
• You are married, under the age of 30 and have no children.
• If you have children, but your family is healthy.
• You are retired but too young to be eligible for Medicare.
• Your preferred doctor or hospital does not accept Obamacare, or no Obamacare plan is available in your area.
• Or, like millions of Americans, you simply can’t afford Obamacare.

The Obama administration established that short-term health care plans can only be used for its original purpose: as a safety measure before another plan takes effect. They were never intended to be used as a substitute for traditional, long-term coverage. 

The Trump administration removed restrictions on these plans. Since October of 2018, federal regulations allow short-term plans to last for up to 364 days, and new federal laws also allow them to be renewed, provided that the total duration of the plan does not exceed 36 months.

If you need help obtaining a  Short-term Health Care Plan call 866-295-1220. 

More about these plans:

• Short-term health care plans in your state
• I’m turning 26, is a short-term plan right for me?