August 21, 2018

The Affordable Care Act made significant changes to the way families and individuals went about buying health insurance, as well as the specific types of plans that could be purchased.  Temporary health insurance coverage, or short-term plans, have been historically popular with a wide range of people including those starting new jobs, moving, making substantial life changes, etc.  The ACA essentially did away with short-term coverage and, understandably, many were not happy. 

 On August 1st it was announced that short-term healthcare plans would once again be made available to those seeking an alternative to traditional coverage.  The change goes into effect on October 1st 2018, which is roughly six weeks prior to the start of this year’s Open Enrollment.  Unlike temporary coverage of the past—which was typically limited to three months—the new short term plans will allow people to purchase coverage for just under a year, with the option to renew for a maximum of  36 months.

Short Term Health Insurance at a Glance

Like most types of health insurance, it’s important to understand the coverage details before committing. Short-term plans can serve as an ideal option for many, though they’re not for everyone.  Here’s an overview of what makes them different from traditional and comprehensive plans:

Lower Premiums

From the information that’s coming out at the time of this writing, short-term premiums are expected be lower than what one might pay for a traditional plan.  This makes them ideal for younger individuals, as well as those who are healthy and not dealing with a wide range of pre-existing medical conditions.  An agent can help you better understand what they will cost you, and whether or not there’s a better option based on your needs and budget.

Limited Coverage

One of the trade-offs for the reduction in monthly premiums, is coverage that is less comprehensive than a standard individual or family plan.  They’re designed to cover the basics, such as doctor’s visits, trips to ER, and other essential services.  In light of this, they may not be the best option for older adults, people with disabilities and others who require more specialized forms of care.   

Pre-Existing Conditions

There is s still information coming out on how short-term insurance plans will handle the expenses for those with pre-existing health conditions.  The premiums may be a bit higher than those who are healthy, though there’s no official cost schedule to be officially referenced at this early stage.  If you’re reading this after October 1st 2018, there’s a good chance that your agent will be able to help you gauge a better idea on whether it’s a sound option for you.

The bottom line on short-term health insurance is this:  If you’re younger, in good health and in need of a more affordable healthcare option, temporary coverage is something that’s certainly worth looking into.  If you’re in the Chicago area or state of Illinois and interested in learning more, Premier Financial Insurance can help.  We’re based in Lisle and have been serving the Chicagoland area with honesty and integrity for the past 15 years.

Get in touch with one of our staff agents today by calling Premier toll-free at 800-369-0287, or by writing to us through our secure contact page.