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.
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