Quick Guide to Short-Term Medical

If you have customers who are between jobs or have started a position in which health benefits don’t kick in on day one, they may need to have some sort of temporary coverage. In a nutshell, Short Term Medical Insurance is designed to bridge the gap between other plans.

What is Short-Term Health Insurance

Generally, Short-Term Medical Insurance (STMi) will run for a few months (or even less) to about a year and is often designed for healthier people who just need coverage to cover certain services. These plans can be used to cover the time between a previous policy and an upcoming one. Among those who could benefit from a Short-Term Medical Policy are people between jobs, recent college graduates, individuals who missed an open enrollment period, retirees who aren’t yet eligible for Medicare and a less expensive alternative to COBRA for those that are healthy and understand the risks.

On the other hand, because STMi is not regulated by the Affordable Care Act (ACA), these plans may not include inpatient or outpatient hospital care, mental health services or even prescription drug coverage. Similarly, these plans are not required to cover pre-existing conditions, including pregnancy.

One benefit of an STMi with UnitedHealthcare is unlike ACA plans, their STMi’s have access to a national network if travel or portability are a benefit.

The important thing to remember is to have conversations with customers and potential customers to understand their scenarios and recognize STMi as a possible solution. You and the customer should pay close attention to the fine print and understand what is and isn’t covered before signing up.

How Much Does It Cost

Under most circumstances, short-term plans are cheaper than major medical plans – usually 50% to 80% less than regular individual market coverage. The cost, though, varies based on the persons age, location and level of coverage. In fact, affordability is one reason these types of plans are so appealing to some people.

How We Can Help

At LeClair, we understand the options available – whether it is a short-term plan, ACA or other option. If you have customers who may qualify for one of these options and have questions, please reach out to us at 651.739.2010.