A short-term plan is a catastrophic plan that is a cheaper alternative to individual health insurance. It's not for everyone, but will protect you from catastrophic medical costs.
Some things to note:
- These plans do not cover pre-existing conditions (some states offer a guaranteed issue option)
- Do not cover existing medications, and new medications are usually subject to your deductible
- Do not cover preventative care at no cost
- Do not count as comprehensive coverage under the ACA (Obamacare) which mandates you mush have a comprehensive plan at least 10 months out of the year in order to avoid a tax penalty.
- Do offer protections in the event you incur new, unanticipated medical costs
- Offer comprehensive health coverage at more affordable prices than ACA plans
- Do offer additional add-on accident or critical illness insurance products that will provide payouts that CAN be used towards your premiums or deductibles
- Do offer access to the Aetna Open Access PPO national network: Aetna PPO Provider Finder
National General is the only short-term carrier that is currently offering a year-long plan. While less-expensive than most individual plans on the market, consumers should also weigh the costs of possibly paying a tax penalty into their decision.
The government's recent orders on short-term or catastrophic plans do not have any immediate effect on consumers ability to buy or keep short term plans, and the IRS has issued communication that makes it clear that consumers would still be subject to the ACA tax penalty for 2018. That being said, the tax penalty + the cost of a National General short term plan could still be less than an individual plan on the marketplace in your area.
Use our plan finder to calculate the costs of every individual on or off exchange plan in your area, or if you'd like to check out a comprehensive medical plan:
Questions? Give us a call at (312) 726-6565 to speak to an agent.