Short-term health insurance is an effective way to get the coverage you need if you have missed open enrollment or are caught in-between insurance plans and coverage. Short-term insurance can grant essential health coverage to those who need it, yet so many people hold themselves back due to myths that muddle the truth.
At Custom Health Plans, Inc. we are strong proponents of short-term health insurance and believe that everyone deserves proper coverage. To help those who need coverage now, we have busted the top five myths about short-term health insurance and provided the truth about these plans.
Myth 1: You Must Be Young to Qualify
Short-term health insurance is not just for the young and healthy, it’s for everyone! We see short-term health coverage in participants between the ages of 19-64
Everyone faces their own set of challenges when the need for short-term coverage arises. So, it is only fair that we provide a plan that is available to insurance applicants of all ages.
Myth 2: Your Plan Can Only Last a Few Months
The term “short-term” does not mean a matter of months as far as coverage goes. People who purchase these types of plans can find themselves covered for up to 12 months. Beyond that, people can renew their coverage twice and stay secure under their insurance provider for a total of 36 months!
If you are in-between jobs in an economy like the present, a short-term health insurance plan could be your escape from the costly marketplace and serve as an affordable alternative until permanent coverage is found.
Myth 3: Short-Term Health Coverage is Only for Dire Emergencies
Although the idea of short-term plans may seem like something someone would purchase in case of a health emergency, the truth is, these plans function like standard coverage for everyday use.
A short-term medical plan can come equipped with deductibles, coinsurance, and copays for doctor visits. Keep in mind, the coverage and deductibles that come with any health plan will vary. It is up to you to work with a Texas licensed Health insurance broker like Custom Health Plans who can help you navigate your options and find short-term coverage that works best for your overall circumstances.
Myth 4: Enjoy That Tax Penalty!
Prior to the 2017 Tax and Reconciliation Act, this myth was a reality. Under the Affordable Care Act, people on these plans were issued a tax penalty for not being on a healthcare plan that offered minimal essential coverage.
Present day short-term insures no longer must worry about paying a large sum of taxes at the end of the year because the 2017 act nullified the penalty and changed the amount owed to $0. We are an insurance broker that is proud to support health plans that are affordable, fair, and helpful for all who need them.
Myth 5: Doctors Will not Accept Your Coverage
Finally, most people do not opt for short-term health insurance in Texas because they do not believe they will be covered at a standard doctor’s appointment. Fortunately, doctors accept all different types of health insurance. However, much like any insurance plan, your physicians must be in-network for benefits to kick in. Fortunately, most Short-term health plans use Nationwide PPO networks, so the odds of being out of Network is exceedingly small.
Myth 6: Short-Term Coverage is Expensive
Many people are wrongfully lead to believe that short-term plans are more expensive than their Marketplace counterparts. In reality, short-term plans are usually up to 60 % less expensive than a Marketplace plan and are a PPO network.
Marketplace plans are usually more than twice the premium for a HMO network, which are much smaller or narrow networks and are not accepted by a bigger swath of providers.
Some Carriers Like United Health Care & National General Health & Accident offer an additional 24% discount by choosing a pre-pay or single pay option.
Keep in mind that these plans are less than half the cost of Marketplace coverage because they are not filled with mandates that Obama-Care forces customers to pay for. Short-term plans are not for people who have major chronic conditions, like Cancer, Heart Disease and Diabetes.
This is due to some pre -existing limitations with these plans because they are not ACA plans but are Non ACA plans direct with the Carrier.
Afford the Short-Term Coverage You Need with Custom Health Plans, Inc.
If you are between jobs, waiting for Medicare eligibility to kick in, or are a younger person who can no longer remain on their parent’s health plan, health insurance is still a necessity. Do not live your life walking on eggshells without essential coverage until the next open enrollment period. Trust Custom Health Plans, Inc. to help you find the short-term coverage you need. Contact us today to get a free quote started or to learn more about short-term plans.