Are you considering short-term healthcare plans? Short-term policies cover insurance lapses whether you’re between jobs or awaiting employer-sponsored policies to start. However, you must be aware of the recent policy changes before selecting a plan.
Since these updates may affect your policy choice, learning more about them is essential. So, our health insurance experts at My Healthcare Direct will provide you with a quick guide to short-term plans.
What are Short-Term Health Insurance Plans?
Short-term health plans provide coverage to policyholders for a month to three years. These policies are temporary and designed for those who need limited-duration coverage. For instance, they cover emergencies and lapses in insurance. As a result, they typically offer limited coverage and benefits.
Namely, they don’t always cover essential benefits like maternity care or prescription drugs. These plans may have annual and lifetime limits. Also, they are not subject to other Affordable Care Act (ACA) Marketplace plan regulations, like rate review.
However, short-term plans usually have lower premiums and higher deductibles. So, you must pay more out-of-pocket costs before the plan starts.
Types of short-term healthcare plans include the following:
- Tri-term: It is a type of short-term insurance that lasts for three consecutive terms. Insurers designed them for those who want comprehensive coverage.
- Flex-term: covers unexpected illness or injury from 30 days to 1 year. Flex plans are for employees who are between jobs or awaiting job benefits.
- Epic Base: They cover up to 180 days, offering various deductible and coverage maximum options. Epic plans provide preventative care and optional prescription drug coverage.
New Regulations for Short-Term Health Insurance Plans in 2025
Recently, there have been several key changes to short-term plans. In March 2024, the Department of Treasury, Health and Human Services implemented nationwide duration limits on short-term policies. The rule limits short-term plans issued on or after September 1, 2024, to three-month terms, capping the total duration to four months. This rule also applies to renewals.
A renewal includes new policies issued through the same insurer or another insurer within 12 months of the first policy’s effective date. This prevents policyholders from purchasing or “stacking” policies from the same insurer. So, members cannot re-enroll with the same carrier for a 12-month.
Why Were These Regulations Implemented?
The government made these changes for a reason. The revisions ensure short-term plans fill a temporary gap between two comprehensive policies. More so, regulators wanted to stop these plans from serving as a long-term solution.
They want to make it easier for consumers to differentiate between ACA-compliant insurance and short-term plans. Lastly, the rules should reduce inadvertent short-term coverage purchases.
How Can My Healthcare Direct Help?
Our My Healthcare Direct insurance experts will discuss all short-term plans with you. We will prioritize your healthcare needs, giving you our top recommendations. If you have any concerns, we will help you navigate the federal policy updates so you have no coverage gaps.
Contact My Healthcare Direct for Assistance with Health Insurance
If you’re looking for short-term insurance, rely on My Healthcare Direct specialists. Our trained experts have extensive knowledge of insurance products, companies, and guidelines.
When it comes to finding the right policies for your healthcare needs, our team is proactive. More so, we will help you address any obstacles so you can receive coverage as quickly as possible.
Contact us today for further assistance!