Road to Expand Short-Term Medical Offerings is Wide Open in 2018

Short-term medical (STM) coverage, a type of health insurance designed to help bridge gaps in your clients’ health coverage, offers consumers flexibility in coverage length and cost. While it does not provide the minimum essential health benefits by the Affordable Care Act (ACA), it can serve as an affordable option for those facing life-altering transition periods.

2018 and STM coverage

Because STM plans don’t have to adhere to ACA regulations, consumers “would have a wider array of options with lower monthly rates1.” Current legislative reform attempts are expected to make room for more STM plans2.  While “these policies can exclude those with pre-existing conditions or base rates on consumers’ medical history” and “offer skimpier benefits1,” major insurance carriers, including UnitedHealth and Aetna, have expressed interest in expanding their portfolios with STM offerings3:

UnitedHealth president and COO Dan Schumacher: “…we are excited to see [the regulation on STM plans that limited length of coverage] extended to the full year, because the reality is it provides a bridge for people in between coverage3.”

Aetna CEO Mark Bertolini: “We are actually looking at reenergizing a program we had prior to the ACA, but in a more on a focus of short-term, one-year kind of plan, or transition plan, versus just the skinny benefit…4.”

Who benefits from STM coverage?

This level of coverage may fit the needs of your clients who are:

  • Transitioning between jobs
  • Waiting for employer insurance to begin
  • Graduating from college
  • Rolling off parents’ coverage
  • Waiting for Medicare coverage to become effective

What are some of the features that STM plans provide?

  • Your clients can choose this level of coverage at any time in the year.
  • Your clients can choose from a variety of plans, many of which include preventive care for individuals as well as for families.
  • Because benefits are more restricted or limited, your clients can take advantage of rates that are often lower than major medical coverage.
  • Your clients can often see providers of their choice. If a provider does not file a claim for your client in office, your clients can easily submit their own claims to the carrier for reimbursement.
Disclaimer: STM coverage is not intended to be a replacement or alternative to ACA or other major medical plans nor does it provide the minimum essential health benefits that are required and it won’t help to avoid the fee for not carrying health insurance. They can have exclusions and limitations, which may not make them a valid option for some clients.

Learn more about incorporating short-term medical coverage into your portfolio by:

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Health Insurance Innovations, Inc. is a leading developer and administrator of affordable, web-based individual health insurance plans and ancillary products. We help consumers address their health insurance needs by offering access to a number of products offered by various insurance carriers.

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1: “What happened to Trump’s big plans for insurance?”

2: “From premiums to politics: 5 predictions for the health insurance industry in 2018.” Leslie Small.

3: “UnitedHealth’s (UNH) CEO David Wichmann on Q3 2017 Results – Earnings Call Transcript.”

4: “Aetna (AET) Q3 2017 Results –  Earnings Call Transcript.” SeekingAlpha.com


Infographic How Are Short-Term Medical Plans & ACA Plans Different

Infographic: How Are Short-Term Medical Plans & ACA Plans Different?

The world of healthcare coverage can feel convoluted and confusing, making it tricky for your clients to navigate. As costs of medical care continue to rise and challenges to healthcare legislation continue to spark headlines, it’s crucial that your clients understand the differences in coverage available.


HIIQ as the Modern Landscape

We’re Modernizing the Insurance Landscape

In the ever-changing health insurance market, consumers recognize that change is constant. Costs for care and coverage are on the rise, some major carriers have reduced their plan options or left the ACA exchange completely, and the battle for ACA reform still wages on.

But there’s one important factor that will remain unchanged: the need for affordable coverage options.

Short-term medical policies have provided those options and filled coverage gaps for millions of consumers. The market saw the number of short-term policies sold in 2014 increase by 20% in 2015 while the sale of long-term policies decreased by 20% in 2015.

It would seem that the future of this market is boundless. Recent data indicates short-term coverage sales will continue to increase in 2017, as many consumers will be unlikely to find ACA exchange coverage options that meet their budget needs.

At Health Insurance Innovations, we’re on a mission to modernize the insurance landscape and provide access to more affordable coverage options, including short-term medical policies. We know that every day is an opportunity to make new paths, and we’re proud of the path we continue to blaze with highly rated carrier partners that offer affordable, value-rich coverage solutions. Our simplified application process and cloud-based digital platform enables licensed agents to enroll consumers in coverage through our carrier partners that tackles evolving healthcare and budget realities. That coverage includes:

  • Short-term medical
  • Limited medical
  • Accident, cancer and critical illness
  • Prescription
  • Dental
  • Vision
  • Life
  • AD&D
  • Health and wellness programs
  • Lifestyle discounts

Our role is to serve as consumers’ billing and technology resource when they purchase a policy from a licensed agent. We provide customers with:

  • Access to their Member Portal to view and download important insurance documents and to update policy and payment information
  • Printed insurance cards on behalf of their carriers
  • Billing support and assistance
  • Periodic emails on behalf of their insurance carriers on how to take full advantage of their coverage

With a variety of products and leading edge tools and technologies, we’re leveling the playing field as our carrier partners provide competitive coverage that fits a variety of lifestyles and needs.

Learn more today by: