Short-Term Health Insurance
What is Short-Term Medical Insurance?
Short-Term Medical insurance (STM) is a type of health plan that can provide you with temporary medical coverage when you are between health plans, outside enrollment periods, and need some coverage in case of an emergency. However, to get the most out of a short-term health plan, you need to understand how they work, what they cost, and what they cover. Although the plan type may seem misleading, STM plans can be purchased for one year and can be re-newable thereafter if you meet the qualifications.
Current federal regulations limit short-term medical plans to 364 days of coverage at once. Those rules also give you the option to renew your plan for up to 36 months. These plans cover Primary Care, Specialist, Emergency Care, Hospital but they do not provide full coverage and are not required under the Affordable Care Act to provide essential health benefits(link to the section that talks about EHB).
The requirements under ACA does not apply to Short-term Medical plans as they relate to pre-existing conditions and the insurers can decline to cover you or charge a higher rate based on your medical condition. A pre-existing condition is a medical condition that started before a person's health insurance went into effect. Common pre-existing conditions include:
- Chronic obstructive pulmonary disease;
- Congestive heart failure;
- High cholesterol; and
- High blood pressure.
Why do you need short-term insurance?
You can apply for short-term coverage during any time of the year. The costs are often more affordable than traditional insurance plans. It makes sense to apply for short-term medical insurance for the following reasons:
- If you do not qualify for subsidies under ObamaCare or are outside the open enrollment period.
- If you are in between jobs, a new student, a traveler, have retired early but do not qualify for medicare, or missed the ObamaCare open enrollment period.
It is important to know that each state has different rules when it comes to STM. We represent many plans and can customize your plan options.