Currently, about 2.2 million Americans are caught in the coverage gap. Most of these Americans reside in those 12 states that have refused to expand Medicaid coverage and their household incomes are under the federal poverty level. Hence they are unable to pay the price of comprehensive health plans. Thus, all such consumers who are caught by the family glitch or coverage gap and don't have access to affordable ACA-compliant coverage may at least find out about the short-term plans available in their area to check whether it is worth having or not.
About Short-term Plans
Short-term insurance plans offered through private insurance companies provide temporary health coverage to the insured. These plans usually provide coverage for 3 months or less but in some states, they even provide coverage for 1 to 3 years. Short-term plans work exactly like health insurance plans, the insured are required to pay a monthly premium and in return, the carriers provide coverage for some of the healthcare costs. However, people should be aware that short-term health insurance plans unlike major health insurance plans do not have to adhere to any federal regulations.
Who is Eligible for Short Term Plans?
It is observed that many mid-income group people fail to enroll in the Individual health insurance plans, mainly because they are ineligible for premium subsidies. Hence short-term plans turn out to be particularly useful for a majority of the 30 million uninsured that especially include early retirees looking for short period coverage before they become eligible for Medicare, people between jobs, self-employed, and individuals who don’t have access to employer-sponsored plans and find monthly premiums of ACA-compliant health plans unaffordable.
Short-Term Plans Significance during the Pandemic
Short-term insurance turns out to be a valuable option during the coronavirus pandemic, as it allows people to obtain coverage for a short duration of their unemployment period. Most short-term plans offered coverage for coronavirus-related testing and treatment. Thus, millions of unemployed who were expected to remain unemployed for longer than 90 days can make use of the short-term plans to remain covered at the time of the pandemic. With the uncertainty looming over their jobs and even if they get a job then also their employers may impose 90 days waiting period before including them in the group health plan. Thus, for all such circumstances, short-term insurance proves valuable for uninsured as well as new employees.
Where to buy short-term insurance coverage?
Short-term insurance does not meet the health insurance standards as outlined in the Affordable Care Act. Thus these plans are not available on the insurance marketplace, and so people usually purchased these plans online. Though, an offline purchase is also possible in some cases. Usually, a short-term plan can be either obtained through online portals offering numerous plan options or directly from insurance carriers selling short-term insurance plans. Short-term plans are available in most U.S. states like Texas, Florida, Alabama, and Kentucky, but these plans are not available for sale in 2021 in 11 states that include New York, New Jersey, Maine, Massachusetts, Rhode Island, Vermont, California, Colorado, Hawaii, Connecticut, and New Mexico.
What are the benefits usually covered under short-term insurance plans?
Short-term plans usually provide at least some coverage for medically necessary inpatient and outpatient medical care that also include emergency services. These plans also provide coverage for unexpected illness or injury, some testing related to preventive care. However, individuals must be aware that there are blanket exclusions for any pre-existing condition, and so the enrollees will not be covered for that. The short-term health insurance plans do not provide coverage for mental health, pregnancy, preventive care, and prescription drugs. The short-term insurance plans also impose limits on the amount the plan will pay for certain services.
Summary - Short-term insurance is an ideal alternative for individuals and families who are unable to obtain a major health plan due to any reasons. These plans allow individuals and their families to have immediate coverage, with plans starting as early as the next day of enrollment. Individuals can shop for this plan if they require temporary coverage for a limited period.
