Pivot Health Releases Infographic on Short Term Health Insurance as Trump Administration Reverses Obama-Era Coverage Duration Limit
Illustration focuses on life situations when short term health plans can fill coverage gaps for 50 percent less than Obamacare plans
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“Each year more Americans are being priced out of the health insurance market, and short term plans can be an affordable solution to fill gaps in coverage. Today's Trump administration announcement on the extension of coverage duration periods for short term health insurance is a win for the American consumer. This infographic helps consumers better understand what short term medical insurance is, and where it might be a good fit for their particular situation,” said
The Trump administration’s ruling comes at a time when the uninsured rate in the
“It’s no wonder people chose to go uninsured when rates are skyrocketing. The rapid rise of entrepreneurs, hourly employees and contract workers is driving a thriving ‘gig’ economy but they have to purchase their own health insurance. New company employees typically have a 90-day waiting period before insurance coverage begins, or have an extremely expensive COBRA option when they leave a job. There is a disconnect in the market. That’s when short term health plans, which are structured like major medical health plans, can provide coverage and save consumers about 50 percent or more when compared to ACA plans,” said Smedsrud.
In the infographic,
- Self-employed entrepreneurs who make too much to qualify for an ACA subsidy
- Those stuck in an employer waiting period
- Early retirees
- Individuals moving to a new state
- College students
- Consumers with a limited doctor network
- Individuals who cannot afford COBRA coverage
- Consumers going through a divorce
- Younger adults turning age 26 and aging off parents health plan
- Those too rich for Medicaid, too poor for government subsidies
The Trump administration’s new rules for short term health plans extend the 90-day coverage duration limit to 364 days, reversing an Obama-era rule that was put into place in 2017. Insurers would be allowed to extend policies up to a maximum of 36 months.
Today a tax penalty is imposed on consumers who do not carry ACA-eligible plans for a minimum of nine months, which includes short term health plans. However, in
Smedsrud summarized, “This ruling puts more power of choice back in the hands of consumers. The short term health insurance market has incredible potential as we wait to see how midterm elections and
Read a Q&A with Smedsrud for more information about the short term health plan ruling.
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Source:
Short-Term Health Insurance Premiums 80 Percent Less on Average Than Obamacare Plans, According to eHealth Report
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