Short Term Medical Insurance Instead Of Obamacare?

 In Blog

There is a trend taking over the insurance industry of young and healthy consumers – known as the Millennial Generation – who are purchasing short term medical insurance instead of Obamacare Health insurance plans.

Short term medical insurance sales have increased substantially since Obamacare officially took effect in 2014. This increase has resulted in a steady flow of younger and healthy people choosing short term medical plans over the more expensive Obamacare individual insurance plans.

To these savvy young consumers, Obamacare just doesn’t seem to make sense for them. They are relatively healthy, don’t visit the doctor very often, feel Obamacare is too expensive, too confusing and many doctors don’t take it. So these Millennials are opting out of Obamacare and are willing to take the tax penalty for a medical plan with more flexibility.

What Is Short Term Medical Insurance?

**Please note if you are looking for a short term medical plan in New York, they are not available. If you would like a quote in another state, click here to contact us

Short Term health medical insurance also known as short term medical plans or gap insurance is a temporary health insurance plan for individuals to cover medical expenses caused by an illness or injury up to a maximum of one year.

Shorter coverage periods are also available. Some plans allow coverage for one month, 3 months or 6 months. Basically you can choose the plan of coverage which fits your needs.

Coverage, plan designs and requirements vary from insurer to insurer. Some plans allow you to go out of network if it is medically necessary but most plans encourage in network treatment due to negotiated rates with doctors and hospitals.

Is a Short Term Medical Plan Right For You?

A short term plan may be right for you if;

  • You had a change in employment: You were laid off, resigned or quit and COBRA coverage is too expensive.
  • Working where your employer does not offer a company health plan.
  • You need to fill a gap in your major medical coverage: Such as hazardous sports or activities
  • You are waiting for your health insurance approval
  • You are waiting for Medicare to begin
  • Missed open enrollment and don’t want to be uninsured while they wait for exchange open enrollment periods to begin.

Short Term Medical Basics

Monthly premiums start as low as $100 a month depending on your age, your deductible and length of coverage period. There is a choice of $100, $250, $500, $1,000, $2,500, or $5,000 deductibles. Once your deductible is met, 100% of qualified medical expenses are covered.

Covered medical expenses include:
Hospital Expenses: All medically necessary expenses while hospitalized including:
Hospital room and board limited to semi-private daily rate
Hospital intensive care unit
Emergency room care
Outpatient surgery
Diagnostic services
Supplies and therapy
Physician Services: All medically necessary expenses for treatment including:
Physician services consisting of home, office, and hospital visits

Other medical care and treatment:
Diagnostic services
Supplies and therapy
Skilled Nursing Facilities: Skilled Nursing Facility room and board, provided confinement begins within 30 days following a Medically Necessary Hospital confinement of 3 days or longer.
Home Health Care: All medically necessary expenses if hospitalization would have been required if Home Health Care was not provided and the care is provided in accordance with a written plan established, approved and followed by a physician.
Ambulance Services Expenses: Ground ambulance service from your temporary residence to and from a Hospital.
Prescription Drugs: Outpatient prescription medications covered up to a maximum of $500.
$25,000 Accidental Death Benefit: (Optional)
Hazardous Sports Coverage (Optional with some carriers)

The Downside Of Short Term Medical Plans

  1. Short-term plans are temporary coverage with limited benefits.
  2. They are not compliant with the Affordable Care Act (ACA).
  3. If you purchase this coverage instead of the required individual health plan, you may still be subject to the ACA tax penalty.
  4. Most plans do not cover pregnancy
  5. Some insurance companies will not cover existing health issues and could require you to complete a medical form listing your previous health history.
  6. Some companies can deny coverage based on pre-existing health conditions.

But for some people, they would rather pay the lower premiums and accept the tax penalty. Depending on your financial situation, you could benefit buying these short term plans instead of individual health insurance.

If you would like more information about Short Term Medical Insurance or a free, no obligation quote from our top insurance carriers, contact us directly at: 914-633-1717

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