1. Short Term Health Insurance plans can be far more affordable than an ACA plan even after you consider the tax penalty.
In particular, those who do not qualify Obamacare plan subsidies will be hit by especially high premiums.
EXAMPLE: A 29 year old woman making $33,000 per year in South Florida would pay approximately $2,200 per year for a bronze-level Obamacare plan.
2. You can still get an ACA plan if you do develop a condition that prevents you from reapplying for a Short Term Health Insurance plan.
Affordable Care Act health plans cannot deny coverage for pre-existing conditions. If you do develop a health condition, you might not be eligible for a subsequent Short Term Health Insurance plan, but you can secure an ACA plan during Open Enrollment.
3. Short Term Health Insurance is Flexible.
The ACA requires each ACA plan to include 10 essential health benefits. Maternity services is one of these benefits and is required to be covered by all Obamacare plans. As a simple example, a single male who buys an ACA plan will have maternity coverage that he’ll never need.
In contrast, Short Term Health Insurance offers streamlined benefits--those that a healthy member is more likely to use--hospital, doctor, x-ray and other treatment benefits in case of illness or an accident.
4. There is No Annual Open Enrollment Period.
If you are not enrolled in a plan before the Open Enrollment deadline, you won’t be able to purchase an Obamacare plan unless you meet certain special requirements. In contrast, you can enroll in a Short Term Health Insurance plan at any time.
The ACA Open Enrollment Period is the six weeks between November 1, 2018 and December 15, 2018.