In between jobs? Joined the gig economy? "Aging off" your parents' health plan? Early retiree and not yet eligible for Medicare? These are just some of the reasons why consumers might need short-term health plans, according to Jeff Smedsrud, CEO of Pivot Health. "An Affordable Care Act plan is a fine solution for individuals and families who qualify for financial subsidies to lower their health insurance costs," Smedsrud says. "But for the eight million Americans who don't qualify for an ACA plan subsidy and for those in a variety of life events, they should know there are other affordable options." Short-term medical plans currently are restricted to 90 days of coverage, but the Department of Health and Human Services is accepting comments about a proposal to extend coverage up to 364 days. Smedsrud emphasizes that such plans are not for everyone, but can cover special circumstances. Short-term plans generally do not cover pre-existing conditions, can deny coverage to individuals with chronic health conditions, have leaner benefits than ACA plans and are not considered qualified health benefits for purposes of premium subsidies based on income. "When life throws a curveball, short term health plans can be a low-cost insurance solution while covering doctor office visits, hospitalization and more," Smedsrud says. "It is not for everyone nor should it be considered a permanent plan. But there are millions who need temporary coverage because there are lots of curveballs in this turbulent time."
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