When considering Medicare or health insurance premiums, have you ever thought, “There has to be a better way”? If so, your ears may have perked up when President Trump recently said that Americans should have better access to short-term health insurance plans. Watch out, however; these plans often come with a hidden price tag that could cost you in the long run.
No Pre-Existing Conditions
When you pay traditional Medicare or health insurance premiums, you receive comprehensive coverage in exchange. Even if you had a health problem before your policy began, the insurer must cover related claims. Not so with short-term plans; they typically exclude any claims related to injuries or illnesses that began before you were a subscriber. You’ll be stuck paying 100 percent of those bills yourself.
Many Exclusions
Speaking of paying bills yourself, you’ll also be stuck with the costs of any health issues that are excluded from a short-term plan. Traditional insurance and Medicare Part A must cover the Affordable Care Act’s 10 essential benefits. Short-term insurance, on the other hand, probably won’t pay for maternity care, mental health services, preventive tests or prescription drugs. Those are all benefits that are included with your Medicare Part A or traditional health insurance premiums.
Get a Quote on Health Insurance
No Guarantees
Short-term health plans are medically underwritten. This means that the insurer can evaluate your health history and determine whether to approve you for a policy. Opting not to enroll in Medicare because you’re going to sign up for short-term insurance could backfire if the insurer opts not to cover you. Then, you would be stuck with no health insurance at all.
Increased Subsidy Requirements
Many Americans qualify for help with their health insurance premiums, and they receive a subsidy amount that is calculated based on the cost of current health plans.
Many Americans qualify for help with their health insurance premiums, and they receive a subsidy amount that is calculated based on the cost of current health plans.
When healthy people pull out of traditional healthcare in favor of short-term plans, this leaves mostly sicker people in the insurance risk pool. This raises insurers’ costs, which in turn raises health insurance premiums. As a result, taxpayers end up responsible for funding increasingly higher subsidy amounts.
See if you qualify for assisted health care coverage
Short-term plans may let you down in the long run. Instead, seek the comprehensive protection of a traditional health insurance plan or Medicare.
Comments
0 comments
Please sign in to leave a comment.