If you are currently on a short term plan and have developed a medical condition that needs to be covered in 2018 you will have to sign up for an official Obamcare plan by December 15, 2017!
On April 1, 2017 a new regulation required all short-term health insurance to be limited to three months. Although this new regulation restricts the length of short-term health insurance plans, it does not mean that consumers will be forced to go without insurance. Instead, they will need to reapply every three months to avoid a lapse in coverage.
In order to protect the consumer, certain insurance providers have waived the pre-existing clause and underwriting for the additional terms. This protects the consumers should they have a serious illness or injury that would require additional treatment after their prior three month policy expires. While this is more cumbersome and requires a little more effort it may still provide an affordable solution for many individuals that cannot afford or do not want an Obamacare plan.
The two insurance companies that offer this program are Petersen International and Pivot. You can click on the links to find pricing and to sign up for a Short term health plan for 2018. Make sure you sign up for more than 3 months!
Petersen International (Click on the View Brochure tab for pricing) Pivot/ Companion
Then SURPRISE on October 12, 2017 President Trump signed an Executive Order that instructs several agencies of the U.S. government to “consider” changes to parts of Obamacare including short term medical plans. It is likely that the agencies will not only “consider” the instructions but will act upon them. However, it likely will not happen until after 2018 open enrollment so starting perhaps February 1, the order that limits short term medical plans to 90-day duration will be overturned by federal agencies. This means that in many states plans that are sold after that date can have duration as long as 364 days.
Because short term plans do not cover pre-existing conditions and the last day to sign up for an Obamacare plan that covers pre-existing condition is December 15, 2017 a 16 day window is created from December, 16-31 where an individual could experience a medical event that would not be covered if their plan short term plan started January 1st 2018.
If this is a concern to you a solution would be to purchase an Obamacare plan for the month January and then transition to a short term plan in February when more options may be available for the remainder of 2018.
Because of the volatility of both Obamacare and short term medical plans we urge all clients to purchase a “Living Benefits” Life Insurance policy that provides both critical illness and chronic illness coverage to help protect you.
Short term plans do NOT cover pre-existing conditions, and do not provide all the mandated benefits of the Affordable Care Act. You may still be responsible for the Shared Responsibility Tax.