Major STM Market Shift: How to Leverage the Return of Year-Long Plans

Big Changes in the Short-Term Medical Market

The short-term health insurance market has taken a major turn. With the latest CMS update on Short-Term, Limited-Duration Insurance (STLDI), 12-month STM plans are once again available - and AHCP is ready to help you take advantage of the shift.

For many years, short-term medical coverage has served as an essential safety net for individuals who:

• Don’t qualify for ACA subsidies or find Marketplace plans too expensive

• Missed the Open Enrollment window

• Are between jobs or waiting for employer coverage to begin

• Want flexible, budget-friendly coverage without a long-term contract

Now that year-long STM coverage is back in select states, agents can offer clients more stability, fewer coverage gaps, and greater choice than before.

Why This Matters for Agents

This change creates a prime opportunity to grow your book of business. With 12-month plans returning, you can meet the needs of clients who have been asking for longer coverage terms, and present a clear, affordable alternative for those avoiding ACA enrollment.

Acting now means you can reach this underserved market before competitors do; helping you strengthen client relationships, broaden your reach, and increase commissions. In some states, consecutive STM plans can extend coverage to 24 or even 36 months through automatic reapplications, offering clients peace of mind for years at a time.

The STM Edge

AHCP’s STM offerings are built for flexibility and value, featuring multiple plan designs, PPO networks, and benefits that can include:

• Coverage maximums up to $5 million

• Options for renewable or consecutive plans for multi-year protection

• Preferred rates for healthy applicants

• Next-day start dates for urgent coverage needs

• Benefits such as office visits, urgent care with waived deductibles, prescriptions, preventive services, and even HSA-compatible plans

With these tools, you can confidently position yourself as the go-to resource for clients seeking alternatives to traditional ACA coverage while other agents are still catching up to the changes.