A Short Term Medical Insurance Plan vs an ACA Plan

Compare Short Term Medical Insurance to ACA

Rodney Culp, CEO of Empower Brokerage, has been in the insurance business, helping clients save money, for 32 years. In his 32 years, the health insurance industry has never been as chaotic and confusing as it is now in 2016. In the video below, Rodney Culp shares his expert advice on how consumers should approach the premium increases to save money and maximize their coverage this year’s ACA season. Plus, why they may want to look into a short term medical insurance plan. Check it out!

Problem = High Premiums

There have been so many changes with healthcare over the last few years that many people are confused about what the best options are when choosing a health care plan for themselves or their for their family.  Empower Brokerage seeks to help people find affordable coverage that’s right for them. With 2017 fast approaching, one of the things that we’ve witnessed is rising premiums. With premium increases, it’s become very important to make sure that as a consumer you shop all the available options. That’s where short term medical insurance plans come in.

Solution = Short Term Medical Insurance

One of the options currently available is short term medical (STM).  The STM plans can be a really good alternative to the Affordable Care Act (ACA), or Obamacare. However, STM plans are not qualified. Therefore, a consumer may be subject to a penalty for not buying an Obamacare plan. Contrarily, we find that a lot of people are exempt from the penalty as long as their income is within a certain range. Basically, the range is based on the high premiums that we have with Obamacare. If the premium for an Obamacare plan exceeds 8.5% of their annual income, then they’re exempt from the penalty. There are a lot of people who could purchase a STM plan and not have to pay a penalty.

With STM, they would end up with a lower premium, and they would have coverage that, in many cases, is better. Unlike many qualified plans, STM allows people to see any doctor or any hospital; you don’t have to worry about a limited network. Moreover, even with paying the premium and the penalty, STM plans are oftentimes still cheaper than an ACA plan. For that reason, it’s an alternative to Obamacare that many should consider. Ultimately, we’re helping people find the plan that’s best for them.

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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