Short Term Health Insurance | eHealth

Important notice about short-term plans: Short-term health insurance plans are not qualified health plans under the Affordable Care Act (aca or “obamacare”) and do not meet coverage and benefit requirements from here You cannot receive a subsidy (premium tax credit and/or cost-sharing reduction) under ACA in connection with the purchase of short-term health insurance, and you may still owe the tax penalty (the liability payment). shared individual) in accordance with aca law. Some people may qualify for exemptions from the tax penalty here. More information about the ACA and its implications can be found in our Affordable Care Act Resource Center.

Short-term health insurance plans are generally less expensive than ACA-qualified health plans (also called major medical insurance), but they don’t offer the same level of coverage. Short-term health insurance plans are for people who don’t want or can’t afford major health insurance or who want a temporary form of limited coverage before getting major health insurance. Among other limitations and exclusions, short-term health insurance plans generally do not cover pre-existing conditions (health and other conditions that exist at the time of application) or ACA minimum essential coverage (benefits such as mental health, pregnancy and Birth). , preventive care, etc.).

Reading: What is short term insurance coverage

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Short-term health insurance plans have a limited duration and you will stop receiving benefits when the plan expires. the duration of the plan and whether you can renew or purchase a new plan after the expiration of the plan depends on the plan you choose and the laws of your state. After a short-term plan expires (in some cases, in just 3 months), you must reapply to receive more benefits. if accepted for an additional term under a short-term health insurance plan, the plan’s deductible and other amounts are reset so that amounts paid (or conditions met) under the initial plan are ignored. similarly, whether you have pre-existing conditions will generally be re-determined upon your approval under the new application. Insurance companies and state laws limit the number of times a short-term insurance policy can be renewed and may restrict your ability to apply for more than one consecutive short-term health insurance plan. review the plan details and policy terms for the maximum period of coverage allowed by the plan you select.

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Purchasing a short term insurance plan will make you ineligible for any guaranteed issue individual health plans commonly known as HIPAA plans. Consult your benefits advisor to discuss your rights under the Health Insurance Portability and Accountability Act (HIPAA) and other rights under state law.

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