Short Term Medical Coverage Now Available for up to 36 Months

Following the release of a final rule on “short-term limited-duration” on the Federal Register, insurance carriers can now offer short term medical (STM) insurance* in term limits of up to 364 days, depending upon state availability and specific enrollment limitations.

Select carrier partners of HIIQ even offer the option to reapply for up to 36 months of STM coverage.

“This final rule expands access to additional, more affordable coverage options for individuals, including those who might otherwise be uninsured, as well as to those who do not qualify for PTCs (Premium Tax Credits) or who otherwise find individual health insurance coverage unattractive,” reads the final rule document.

“Consumers who want comprehensive, individual health insurance coverage as defined by PPACA will continue to be able to purchase such coverage on a guaranteed availability and guaranteed renewability basis in the individual market.”

Not only is this a win for consumers seeking health coverage options that fit their lifestyle and budgetary needs, but also health insurance agents and brokers that currently offer short term medical insurance to their clients.

As premiums continue to rise under the Affordable Care Act and the individual mandate penalty going away in 2019, many estimate an increase in short-term health insurance enrollment over the next year. The Centers for Medicare and Medicaid Services (CMS) estimate approximately 600,000 Americans will sign up for a new short-term medical plan next year.

Some entities project even bigger numbers. The Commonwealth Fund, a private foundation “supporting independent research on health care issues and making grants to improve health care practice and policy”, estimates that up to five million Americans could enroll in short-term coverage now that these longer term limits are now available.

As it stands today, a handful of HIIQ carrier partners offer STM plans with these new term limits (including plans with a reapply option for up to 36 months) in eligible states. HIIQ-contracted agents can now provide this option to eligible clients in need of coverage for up to 364 days.

With next-day coverage available, short term medical policies on the HIIQ platform may fit the needs of your clients who are:

  • Transitioning between employers
  • No longer able to get coverage under their parents’ policy
  • Waiting for their Medicare coverage to become effective

Call 1-877-376-5831 and select option 3 or email to learn more about HIIQ and our highly rated carrier partners that provide competitive, quality options for short-term medical coverage.

*This coverage is not required to comply with federal requirements for health insurance, principally those contained in the affordable care act. Be sure to check your policy carefully to make sure you understand what the policy does and doesn’t cover. If this coverage expires or you lose eligibility for this coverage, you might have to wait until an open enrollment period to get other health insurance coverage. Also, this coverage is not ‘‘minimum essential coverage’’. If you don’t have minimum essential coverage for any month in 2018, you may have to make a payment when you file your tax return unless you qualify for an exemption from the requirement that you have health coverage for that month.