Due to rules issued by the previous administration, consumers can only purchase short term medical plans for 90 days at a time. Then, after the 90 days are over, the consumer has to re-apply. Within a year, a person would have to apply for a short term medical plan four times. An additional downside to this new ruling is in regards to pre-existing conditions. Typical of all short term medical plans, insurance companies don’t cover pre-existing conditions. Now because of the new rules, if someone has a medical condition that occurs during a 90-day short term plan, it will be considered a pre-existing condition when they re-apply. A person could have a heart attack on the 89th day of the plan, and they could cease to have coverage for their treatment under a new short term plan. This is a big problem for people who don’t have a qualified health plan.
However, now thanks to Companion Health, this will no longer remain a problem. With their new short term medical plan, Companion Health has eliminated the hassle of re-applications and pre-existing conditions.
Companion Life Short Term Medical Plan
The new company, Companion Life, takes into account the previous administration’s ruling and simplified it. Instead of re-applying every 90 days, Companion Life enables consumers to complete four applications at once. In doing so, they provide coverage for a full year without the hassle of re-applying.
Moreover, Companion Life remedies the issue of pre-existing conditions with their new plan. Though their short term medical plan still does not cover pre-existing – like other short term plans – they do cover pre-existing conditions on subsequent plans. In other words, Companion Life’s 90-day plan does not cover any conditions prior to enrollment. However, they do cover pre-existing conditions that arise while on their short term medical plan for the next 90-day period.
Before the 90-day period is over, they email the policyholder to verify if they would like to continue coverage for another 90-day period. If the policyholder agrees, then Companion Life sends them an amendment with new cards for the second 90-day period. And anything that occurred during the first 90 days is not a pre-existing condition for the second, third, or fourth 90-day period.
As for the availability of these plans, it depends on the state. Some states, for instance, only offer coverage for six months – or two 90-day periods. Other states allow consumers to purchase four 90-day periods, ensuring coverage for one year. They provide continuous coverage until someone can enroll in a qualified health plan during open enrollment. So, this is definitely a plan worth considering if you find yourself without a health plan. You can get it at any time, and you can cancel it at any time.
Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions. So if you have any questions or concerns, comment below and your question may be the topic of our next video!
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