Pivot Health Expands Its State Availability Footprint as Trump Administration Readies to Release New Rules on Short Term Health Plans

PR Newswire

SCOTTSDALE, Ariz., May 30, 2018 /PRNewswire/ -- Pivot Health, a leading provider and manager of specialty health insurance products today announced it is releasing its short term medical (STM) insurance products in seven additional states, bringing its national offering to a total of 30 states. New state additions include Idaho, Louisiana, Missouri, Nevada, North Carolina, North Dakota and Oregon.

The product release is just ahead of the Trump administration's signal that they plan to increase the coverage duration of short term plans from 90 days to nearly 12 months. The Obama administration had limited STM plans to 90 days of coverage for a single plan.

Jeff Smedsrud, Chief Executive Officer of Pivot Health said, "STM plans are an affordable safety valve that provides very good coverage for those who have been priced out of the market for Obamacare plans and earn too much to qualify for premium subsidies. Pivot Health is working to eventually expand its state availability to all states that allow STM plans."

Before the Obama administration rule that restricted all states to 90 days, 35 states had allowed 364 days of coverage, while 10 other states limited coverage to six months in most instances. Five states – Massachusetts, New Jersey, New York, Rhode Island and Vermont – do not allow short term health plans.

Most plans available from Pivot Health cost about 50 percent less than Obamacare plans. The company is also working on the next generation of short term health plans with expanded coverage options. Pivot Health plans are not eligible for federal premium subsidies.

"In states where short term health insurance is not allowed, some consumers will be forced to make a difficult decision – go uninsured or buy an Obamacare plan that will bust their budget. Both choices lead to economic ruin. Not allowing short term insurance for temporary life situations such as job loss, moving out of state, aging of a parent's plan, divorce or being stuck in an employer waiting period is extremely unfair to consumers who unwillingly will have to pay extremely high insurance premiums or go uninsured."

Despite the perception that COBRA is an alternative for all those who lose job-related coverage, those who work at firms with less than 25 employees are not eligible, Smedsrud said.

Based on a recent Gallup poll survey, the uninsured rate in the United States topped at 12.2 percent at the end of fourth quarter 2017. This included 3.2 million Americans who became uninsured in 2017.

A study by Covered California, the state's health exchange, points to nearly 90 percent premium increases in many states over the next three years.

"The number of Americans buying short term health plans is expected to double or even triple during this year according to experts and government agencies. This simple fact should send a loud message to lawmakers of both political parties: People want health insurance," concluded Smedsrud.

About Pivot Health
Launched in 2016, Pivot Health is an insurance product development, management and marketing company led by an experienced team of health insurance professionals that have managed over $7 billion of insurance premium. The company has proprietary products and dedicated relationships with several national carriers. The founders of Pivot Health have led previous firms that were acquired by NYSE listed companies. Pivot Health recently announced it was acquired by HealthCare.com (www.healthcare.com), a privately-owned search-and-compare health insurance shopping platform. For more information, visit www.pivothealth.com.

Editor's Note: California, Colorado, Connecticut, Idaho, Kansas, Michigan, Minnesota, Montana, Nevada, New Hampshire, North Dakota, Oregon, South Dakota and Washington have state variations that limit coverage duration.

STM plans may exclude individuals with pre-existing conditions or have may waiting periods for coverage. Certain health care services may not be covered.

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