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Short Term Plan Extended to 12 months

Short Term Plan Extended to 12 months

The Department of Health & Human Services announced recently that they have extended the length of time that a person can be eligible to hold a short term health insurance plan from 3 months or less to 12 months or less.  Although it is not equivalent to a qualified health plan, a short term plan can help fill gaps when an individual or family doesn’t qualify for a Special Enrollment Period to enroll in a qualified health plan.

black stethoscope with brown leather case

There is a wide variety of services that short-term plans do not cover, including most pre-existing conditions.  Qualified health plans are required to cover preventative services at no cost, but short-term plans generally do not have any coverage for preventative health, maternity, or mental health.  For 2018, when taxpayers can be penalized for not having qualified healthcare coverage, a short-term plan does not count and the enrollee would be required to pay the tax penalty.  So it is unlikely that someone could use a short-term plan as a replacement for a qualified health plan.  But as a tool to prevent a catastrophic hospital bill, short-term plans can be very useful!

Because this change is so new, Cedar River has companies that can write short-term polices up to six months, and have applied to be a part of the twelve-month program.  If you’re curious about your healthcare options, don’t hesitate to call Cedar River Insurance!  



Photo by Marcelo Leal on Unsplash