Open enrollment season doesn’t begin until November 1. So what happens if you find yourself without health insurance coverage before then? If you have a qualifying life event entitling you to a special enrollment period, you may be able to enroll in another health plan immediately. But if you aren’t eligible for a special enrollment period, short-term medical insurance coverage may be the answer.
Short-term medical insurance coverage is designed to provide peace of mind should an unexpected injury or illness occur before an open enrollment period allows you to enroll in a Marketplace health plan or you become eligible for coverage under another employer health plan. (Many employers require newly hired employees to wait for a period of time before they are eligible for health insurance.) Short-term plans also can come in handy for those who turn 26 and are no longer eligible for coverage under a parent’s health plan. These types of plans can be a solution for anyone who finds themselves with a gap in coverage for any number of reasons. As a bonus, with a short-term plan, you can be covered almost immediately after applying, typically within 24 hours.
Short-term medical coverage has two important benefits:
Short-term medical insurance coverage is available for as little as one month. The most common term for this type of coverage is six months. In fact, some states only allow 6-month terms for these types of policies. You can easily cancel your coverage, too, when it’s no longer needed.
It is an affordable way to remain insured. Short-term medical insurance coverage often has lower monthly premiums than traditional, major medical coverage.
One reason for the lower premiums is that with short-term policies, pre-existing conditions are not covered. Under the Affordable Care Act, major medical plans are not permitted to deny coverage based on pre-existing conditions. With short-term medical insurance, that’s not the case. Your health information is analyzed to determine coverage eligibility.
Short-term medical plans also do not cover essential health benefits that Marketplace plans cover, including ambulatory patient services, emergency services, hospitalization, maternity and newborn care, mental health and substance use disorder services (including behavioral health treatment), prescription drugs, rehabilitative and habilitative services and devices, laboratory services, preventive and wellness services and chronic disease management, and pediatric services including oral and vision care.
Another fact you should know about short-term medical insurance coverage is that because these plans typically do not comply with the Affordable Care Act’s requirements, you may have to pay a penalty for not having comprehensive coverage when you file your taxes next year. The penalty for not having health insurance has been repealed but the repeal won’t take effect until 2019. The penalty for having coverage that doesn’t qualify as ‘minimal essential coverage’ under the Affordable Care Act is $695 or 2.5 percent of your household income, whichever is greater.
An alternative to short-term medical insurance is Christian health plans. With these types of health plans, you don’t have to worry about open enrollment deadlines or qualifying for special enrollment periods. A Christian health care plan can be purchased anytime.
Christian health plans are offered by organizations called Christian Healthcare Ministries. Healthcare ministries oversee the sharing of medical expenses among groups of like-minded individuals and families. Christian Healthcare Ministries have been around for decades, with billions of dollars of healthcare needs having been shared by its members. These types of plans welcome new members who can honor a Statement of Beliefs by which the program operates.
At Health Choice One, choice is our middle name. We have many different options to keep your family healthy. We can help you evaluate the pros and cons of each type of plan to determine what will work best for you, your budget, and your healthcare needs. Give us a call today at 888-554-4406. Health Choice One, in Uniontown Ohio, offers a wide variety of health plan options, as well as dental insurance, vision insurance, accident insurance and much more. Let us help you with all of your health plan needs!