A major Trump administration policy change has made short-term insurance even more attractive. It allows insurers to offer coverage for up to 364 days and renew the policy up to three years at their discretion.
However, these plans don’t have to comply with many of the rules required by the Affordable Care Act (ACA). They often discriminate against people with pre-existing conditions and come with high cost sharing and exclusions that result in minimal protection.
1. It’s a short-term solution
If you need health insurance coverage for a defined period of time, such as a gap in your current coverage, short-term coverage may fit the bill Short Term Medical Insurance Florida. For instance, a young adult who loses their parent’s insurance and needs coverage until they find a new job might opt for a short-term plan.
In these situations, it can be useful to compare a few different short-term plans and choose one that best suits your needs. You can do this by filtering the options by monthly costs (premiums), deductibles, coinsurance and coverage options.
For example, some short-term plans offer a per-cause deductible where you pay a separate deductible for each illness or injury. This strategy can reduce your premium payment by around 8% to 10%.
You can also save by staying with doctors and healthcare providers who are in the network of your selected short-term medical plan. In many cases, they will agree to provide care at lower fees than if you were to go outside their network.
2. It’s a solution for people with pre-existing conditions
In the past, if you had a pre-existing condition like high blood pressure or diabetes, you could be rejected for health insurance or pay significantly higher premiums. But the Affordable Care Act (ACA) removed those barriers, allowing you to apply for coverage no matter your health status.
ACA plans, in turn, must cover essential health benefits such as preventive services, maternity care, mental health and substance use treatment, and prescription drugs. But most short-term insurance excludes these services, which can make it harder to find a plan that covers you if you get sick.
While short-term insurance isn’t as robust as ACA-compliant major medical plans, it can still be cheaper for some people with good health who are unable to afford an ACA-compliant plan. For example, the Kaiser Family Foundation estimates that excluding pre-existing conditions results in a 38% lower premium than an ACA-compliant plan.
3. It’s a solution for people who don’t qualify for Obamacare
If you don’t qualify for Obamacare because you don’t have access to a job that offers coverage or if your income makes you ineligible for premium subsidies (also known as tax credits), short-term insurance may be an option for you. That’s because these plans don’t need to comply with the ACA, and that means they can offer lower monthly premiums than ACA-compliant plans.
However, if you do need healthcare, it’s important to make sure the policy you choose includes all the essential health benefits outlined in the ACA. This includes preventive care, maternity and newborn care and prescription drugs.
In addition, if you have ongoing health needs that short-term plans don’t cover, major medical insurance may be the right choice for you. These plans are available outside of Open Enrollment and on and off exchanges, and they can help you stay healthy while saving money on your monthly premiums.
4. It’s a solution for people who don’t have access to health insurance
If you’re uninsured, you’ll likely see short-term insurance as an attractive option because it can help you get coverage while you wait for open enrollment to start. But as with any type of insurance, you should look at your options carefully.
For starters, the deductibles on short-term plans can be steep. That means if you have an expensive illness or hospitalization, you could end up paying thousands of dollars out of pocket.
You should also consider the amount of coinsurance you’ll pay for care. In many states, short-term health insurance plans don’t include a cap on out-of-pocket costs like ACA policies do.
Short-term plans also don’t include benefits like maternity or mental health. And they’re not regulated by Obamacare, which means you won’t save money on preventive care or reduce your risk of getting sick.