Short term medical insurance, also known as temporary medical insurance, has gone through many changes over the last five years. Originally, it was designed to help bridge the gaps in medical insurance during times of transition, like starting a new job or getting off a parent’s insurance plan. But recently, this option has made its own transitions, thanks to the Trump administration. Here’s what you need to know about the new short term medical insurance.
What is short term medical insurance?
Short term medical insurance was meant to be exactly what its name states: a temporary medical insurance option for transitional periods. Originally, short term medical insurance could only be sold for a period of three months, which made it ideal for bridging gaps in insurance. This type of insurance is highly customizable, flexible and fast, making it a good option for younger generations in times of change, like college students, young adults coming off of their parent’s insurance, employees between jobs or starting a new job or others in similar situations.
What has changed?
Recently, under the Trump administration, the Affordable Care Act was revised, specifically relaxing the rule for short term medical options. Rather than three month periods of coverage, short term medical plans can be written for up to 12 month periods. Plus, the new rules grant the ability to renew two additional times, for a total of three years coverage. The coverage for many of these plans includes preventative care, doctor’s office coverage and prescription medication. There are even additional coverage add-ons available, like dental, vision and accident options. While some of the cons of short term medical still apply, like a lack of coverage for preexisting conditions and less coverage than major medical plans, these recent changes have opened the door for even more people to have access to affordable healthcare than ever before.
Who benefits from Short Term Medical Insurance?
Considering the highly customizable and quick aspects of short term medical insurance, this option is sought after by younger and healthier people. It allows an individual to get cost-effective healthcare without the additional coverages offered by an Affordable Care Act plan. In the end, more of the younger generations with non-traditional employment will choose this option.
Interested in learning more about short term medical insurance? Contact us! We can help you customize an affordable healthcare plan that fits your needs and lifestyle.