All About Short-Term Insurance
The goal of a short-term health insurance plan is to give you coverage for a temporary period of time. These plans can be a good choice if you missed out on open enrollment, do not qualify for special enrollment or cannot afford the premiums and deductibles for a major medical plan.
Short-term plans are generally cheaper than a standard ACA plan, though they do have limitations that can lead to denial of coverage. Additionally, they will only provide coverage up to a certain dollar amount, based on the specifics of the policy.
If you are unsure if a short-term insurance policy is right for you, contact Benefit Bloc. Our locally owned insurance brokerage has been a part of the Alpharetta, GA community since 2019. We are a member of the Alpharetta Chamber of Commerce and the Harris County Chamber of Commerce.
Shop for an Insurance Plan
We recommend that you shop around to see which carriers may be the best fit for you, then make an appointment Benefit Bloc to discuss which matches your needs.
Remember: we will never solicit your information or put you on an email list.
IMPORTANT NOTICE ABOUT SHORT-TERM PLANS:
Short-term health insurance plans are not qualified health plans under the Affordable Care Act (ACA or “Obamacare”) and do not meet the coverage and benefit requirements of the ACA. You cannot receive a subsidy (premium tax credit and/or cost-sharing reduction) under the ACA in connection with your purchase of short-term health insurance and may still owe the tax penalty (the individual shared responsibility payment) under the ACA. Some people may qualify for exemptions from the ACA tax penalty. Further information about the ACA and its implications can be found in our Affordable Care Act Resource Center.
Short-term health insurance plans are generally less expensive than qualified health plans under the ACA (also called major medical health insurance), but do not offer the same level of coverage. Short-term health insurance plans are intended for people who do not want or cannot afford major medical insurance or who want a temporary form of limited coverage before they obtain major medical health insurance. Among other limitations and exclusions, short term health insurance plans generally do not cover pre-existing conditions (health and other conditions that exist at the time of application) or the minimum essential coverage of the ACA (benefits such as mental healthcare, pregnancy and childbirth, preventive care, etc.).
Short-term health insurance plans are limited in duration and you will stop receiving benefits when the plan expires. Plan duration and whether you can renew or buy a new plan after plan expiration depend on the plan you choose and the laws in your state. After a short-term plan expires (in some cases, in only 3 months), you must reapply to receive further benefits. If you are accepted for an additional term under a short-term health insurance plan, the plan’s deductible and other amounts reset so that amounts paid (or the satisfaction of conditions) under the initial plan are ignored. Similarly, whether you have pre-existing conditions will generally be determined anew as of your approval under the new application. Insurance companies and state laws limit the number of times a short-term insurance policy may be renewed and may restrict your ability to apply for more than one consecutive short-term health insurance plan. Please review the plan details and policy terms for the maximum coverage period allowed by the plan you select.
Purchasing a short-term insurance plan will make you ineligible for any guaranteed-issue individual health plans commonly referred to as HIPAA plans. Please consult your benefits advisor to discuss your rights under the Health Insurance Portability and Accountability Act (HIPAA) and other rights under state law.