Demand for Short-Term Health Insurance Has Steadily Grown Since Implementation of the ACA
eHealth report: Short-term health insurance is gaining in popularity among older consumers; half of policyholders say they would be uninsured without it
“Short-term plans serve an important function for consumers transitioning between jobs or with other temporary coverage needs, which is how most people continue to use them,” said eHealth CEO
eHealth’s report,
- Demand for short-term plans has steadily increased since the ACA’s implementation: Short-term applications accounted for 57 percent of all combined short-term and major medical plan applications received by eHealth in 2017, up from 47 percent in 2016.
- Need for temporary coverage and affordability drive interest in short-term policies: Sixty-one percent of survey respondents said they chose short-term policies primarily because they needed coverage for a limited period, while 27 percent did so because it was more affordable than other options.
- One quarter chose short-term policies because they missed open enrollment: Twenty-six percent of respondents said they bought short-term coverage, in part, because they had missed open enrollment under the Affordable Care Act.
- Short-term plans are becoming more popular among older consumers: Since 2015, the share of people between the ages of 45 and 64 buying short-term plans has increased from 21 percent to 25 percent.
- Most short-term policyholders consider ACA coverage first: More than half of respondents (52 percent) said they considered buying an ACA-compliant health plan before turning to short-term coverage. About half (49 percent) believed they would not have qualified for government subsidies under the ACA.
- Half of policyholders say they would be uninsured without access to short-term coverage: Fifty-one percent of policyholders said they would not have health insurance without short-term coverage; only 12 percent said they would enroll in ACA-compliant major medical plans if short-term policies were not available.
- Nearly three-in-ten short-term policyholders use their coverage: Twenty-eight percent of eHealth survey respondents said they received medical care while covered under a short-term policy, most commonly for a sick visit to the doctor’s office.
The full report may be found here or at eHealth’s media center.
About eHealth
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