As the open enrollment season begins, people will look for health insurance plans that fit their needs. Many choose ACA for its broad coverage, including the ten essential benefits. These include doctor services, inpatient and outpatient hospital care, prescription drug coverage, pregnancy and childbirth, mental health services, and more. Although the coverage of an ACA plan surpasses that of normal plans, it comes at a higher cost. There are options for those who need to change their insurance coverage for affordability or other reasons. Today, we will talk about an ACA alternative known as short-term plans.
As of 2024, short-term health insurance plans have seen some significant changes. The most notable is the limitation on their duration. Now, these plans can only last up to four months, including any possibility of renewal. This shift is a step back from previous allowances that could stretch these plans to a year or more. The intention behind this change ensures that individuals have access to more comprehensive health coverage rather than relying on these skinny plans that might not cover all necessary health services.
Pros of Short-Term Plans
Short-term plans provide you with temporary medical coverage in certain situations. Despite their limitations, short-term plans can still assist you under certain circumstances. They offer a temporary safety net if you are without insurance due to job changes, missing ACA enrollment periods, or other life transitions. Many different designs are available to give you flexibility for what you need. While the coverage varies, you might find plans that include:
– Preventive care
– Doctor and specialist visits
– Urgent and emergency care
These plans also typically come with lower monthly premiums and allow for cancellation at any time without penalties. They offer some flexibility and immediacy that can be crucial in certain situations. Make sure you give us a call to review your options at 844-410-1320.
Cons of Short-Term Plans
Short-term plans still come with their own cons. High deductibles are common and may lead to more out-of-pocket expenses upfront. Another important factor is the lack of coverage for pre-existing conditions due to underwriting processes. So, short-term plans may not offer the support needed for those with ongoing health issues. Additionally, any medical services outside the scope of your plan will be your financial responsibility.
Short terms, although cheaper, are not meant to provide you with perfect coverage. These plans are best for individuals who are younger, relatively healthy, and in need of immediate coverage before an enrollment period. Those with financial needs – who can cut back on some health needs – can consider short-term options. To know if short-term plans are best for you, contact your insurance agent and ask what short-term coverage offers.
Before deciding, you must weigh the pros and cons and consider your health needs and financial situation. Consulting with a knowledgeable insurance agent, such as those working at Empower Brokerage, can provide clarity and help you navigate your options effectively.
Have Health Insurance Questions?
We hope that this information on short term plans is helpful for you.
Insurance is oftentimes overwhelming, and we want to shed light on the industry by answering your questions. Comment below and your question may be the topic of our next post!
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Empower Brokerage wants to help you find the insurance coverage you need and help you save money getting it. Stay on top of your health and give us a call at (844) 410-1320.
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