Health Insurance Plans
An Affordable Alternative
to the Affordable Care Act
February 1, 2014
Vol. 10, Issue 2
You may be one of the millions of Americans who have had their health plans cancelled due to the Affordable Care Act (ACA). Even though the president offered a “fix” to this upsetting reversal of his “If you like your plan, you can keep your plan” promise, many of us were still left uninsured as we neared the end of 2013.
If you decide you are unable to find an ‘affordable’ ACA plan to replace your previous coverage, you qualify for an exemption to Obamacare penalties for 2014.
If you don’t fall into this category, you can still go without ACA-qualified coverage for up to three months during the year without facing a penalty. And in 2014, you can sign up for a plan as late as the end of March, and still avoid a tax penalty.
This is where a short-term medical plan comes in. A short-term health plan provides inexpensive benefits in the same way a major medical plan does, but for a predetermined length of time. Short-term plans can go into effect as quickly as 24 hours from the time you apply. And short-term plans are much less expensive than permanent plans.
For example, a family of four (two adults, two children) in Tampa, FL with a household income of $100,000 per year can save up to $4,862 per year with a short-term plan – even with the $1,000 tax penalty the family would have to pay.
You may choose to get a short-term plan until your ACA-approved coverage kicks in, or you may be best off carrying a short-term plan all year. Short-term plans can be held for as little as 30 days and up to 6 or 11 months, depending on the state you live in – with the option to renew it thereafter. Coverage periods of greater than six months may not be available in all states. A short-term plan that can carry you throughout the entire year is ultimately the best option.
Keep in mind that non-ACA short-term medical plans are not required to cover pre-existing conditions or offer the 10 Essential Benefits or all of the preventive care that comes with ACA plans.
Is a Short-Term Medical Plan Right for You?
Short-term medical plans are an effective and inexpensive way to obtain medical insurance, if you:
- Missed open enrollment deadline for Affordable Care Act coverage
- Are exempt from tax penalties and want a cheaper option
- Lose your employer coverage mid-year
- Recently graduated and lost educational insurance coverage
- Lose coverage on your parent’s plan
- Are in between jobs or in a waiting period
- Are outside of open enrollment
- Waiting to enroll in Obamacare
- Months away from Medicare eligibility
Of all the short-term plans available, the best value we’ve found is with a plan called HealtheMed STM. Online applications are available, and the coverage can begin as soon as tomorrow.If you or a friend or relative would like to discuss more about short term plan options, be sure to contact your HSA for America Personal Benefits Consultant for details or visit our Short Term plans page.
To your health and wealth!
"My son and me in Panama"
President - HSA for America