With recent advertisements about short term health plans filling your favorite television shows, you may be wondering what short-term health plans really are. With the confusion surrounding the enactment of the Affordable Care Act, many individuals are left wondering how they will be able to obtain health insurance in time for the open enrollment period. Whether you are in need of some extra time because you are in the middle of switching jobs or planning to make a major move, these informational points of guidance will assist.
A loophole in the Affordable Care Act allows both mainstream insurance companies and non-mainstream insurance companies to offer short-term health plans for those who want an inexpensive solution to health insurance, but do not qualify for subsidies. This short-term health plan ranges from 30 days to 12 months, depending on the particular needs of the individual. There are a variety of pros and cons in utilizing short term health plans, including:
- Short-term health plans are less expensive up front, but if you get a serious illness or injury during the life of the plan, you may be denied when you try to renew for a second term.
- Likewise, your renewal request would be denied if you discovered you had a long-term illness during the life of the plan.
- Since your short-term health plan is not a qualifying plan under the Affordable Care Act, you would not be able to report it as a valid insurance plan, meaning you will still be faced with a penalty.
- These plans are advantageous for those who have short-term health care needs. Examples would be those who are in the middle of a career change, or a major move.
Contact Lou Aggetta Insurance Services in Pleasant Hill for all of your California health insurance needs. Allow us to guide you through the complexities of the new world of health insurance and provide you with the answers you have been searching for!