Here are some examples of when a Short Term Health Insurance Policy may be of use. Short Term Medical is not part of Obamacare and it is offered by private health insurance companies.
An individual was laid off and lost their coverage right before open enrollment began and now they don’t have any income or insurance.
Getting laid off and losing health coverage counts as a qualifying life event which means their open enrollment goes for 60 days from the date their old policy ended However, if they cannot afford an Obamacare plan, then a private short term medical insurance might be a good fit for them to carry them through until they can become covered under their next major medical plan.
An individual did not apply for health insurance through open enrollment, and makes too much money to qualify for Medicaid.
Fortunately, the government realized that the coverage gap is a major problem for individuals who make too much to apply for Medicaid but can’t afford Obamacare plans. Consequently, they are unable to purchase discounted coverage through the exchange. Short Term Medical can bridge the gap until coverage is purchased during the next open enrollment.
An individual is in between jobs and cannot afford Obamacare.
Short term medical insurance is not regulated by the ACA, so there is still underwriting, they don’t cover pre-existing conditions, benefits are capped, and preventive care is not covered. However, STM does cover injuries and illness that can occur after the effective date. Keep in mind the private STM does not meet the individual mandate, but many conditions and injuries are covered under the policy.
Interested? Click here to get a quote on Short Term Health Insurance.