Short Term Medical Plans Back, But—

The Trump administration has just approved the continuation of ” Short-Term ” medical plans, but this is  not without controversy. These type of plans in the past have been used for people who need coverage for a limited period, usually one to three months. However, the administration has now approved ” short-term ” coverages ” that can be extended up to 364 days, a decision that is not without it’s detractors.

This type of coverage is not part of the Affordable Care Act’s policies, and therefore subscribers may suffer a tax penalty. In addition, these emergency type plans do not provide the same level of coverage that is found in approved plans.

In California, there is only one carrier who we do represent who offers these plans. The other day I attended a conference where the company rep was bemoaning the fact that these plans could possibly be banned, which is now not the case.

Reaction has already been swift. Two Republican governors Phil Scott in Vermont, and Larry Hogan in Maryland have already signed bills limiting short term coverage to no more than three months with no possibility of renewal. New York’s Maria T Vullo the superintendent of insurance has banned the plans noting that these plans should never be considered as comprehensive insurance.

The approval of these plans by the administration has possibly put Short Term medical in competition with ACA plans, and that is why more states are considering changing their time frames or eliminating them.

  • Lou Reinitz   LJR Health Care Solutions

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