Benefits of Short-Term Healthcare

Benefits of Short-Term Healthcare

Many Americans are facing the burden of high health insurance premiums, forced to either pay a hefty dollar amount or risk going without coverage. There is a saving grace: short-term healthcare, limited duration insurance.

Short-term healthcare coverage is not anything new to the ball game, however, Obamacare limited the coverage to three months, without the option to renew. Under the Trump administration, short-term healthcare can now be allowed to last up to 12 months, with guaranteed renewability of up to 36 months, subject to state regulations. This newest option protects the consumer from rate increases during this time should they get sick.

Currently, annual premiums for a single individual to $6,600, and families pay more than $18,000.

While short-term is not comparable to full medical coverage, it does provide some compensation in the event the policyholder becomes ill. Since this type of plan has a substantially lower price than insurance, it may prove to be a better option for some individuals. Short-term healthcare plans are cheaper since they do tend to cover fewer medical expense and do charge higher prices for people with pre-existing conditions. For this reason, short-term policies are often bundled with additional products to provide more comprehensive coverage. Dental, vision, accident and critical illness are examples of additional benefits which are commonly added with a short-term policy.

A standard silver plan under the ACA now averages $481 a month for a 40-year old non-smoker. A short-term plan might cost as little as $160 a month, according to some estimates.

Those that will benefit from this plan include Americans who do not have access to health insurance coverage due to not working full time at one place, independent contractors, or those who are in between jobs. Short-term healthcare plans offer multiple options and price ranges relating to deductible costs to meet budget needs. Although these health plans do not satisfy the individual manage for health insurance, beginning 2019 this will no longer carry a penalty.

The Congressional Budget Office estimates that 2 million or more Americans will take advantage of short-term plans.

American Online Benefits Group offers short-term policies to offset high health insurance premiums. Please contact our agent or member services to receive more information at 214-389-9072.

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