Misconceptions About Temporary Health Coverage
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 require 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
When it comes to coverage, “short-term” does not mean “a few months.” When people buy these kinds of plans, they can be covered for up to 12 months. People can keep their insurance coverage for a total of 36 months if they keep renewing their coverage twice.
In an economy like the one we have now, if you are between jobs, a short-term health insurance plan could be your way out of the expensive market and give you cheap coverage until you find permanent coverage.
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 co-pays 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 tiny.
Myth 6: Short-Term Coverage is Expensive
Many people get the wrong idea that short-term plans are more expensive than plans from the Marketplace. In reality, short-term plans are usually up to 60% cheaper than Marketplace plans and use a PPO network.
Most plans on the marketplace cost more than twice as much as an HMO plan, which has a much smaller network and isn’t accepted by as many providers.
Some carriers, like United Health Care and National General Health & Accident, give you an extra 24% off if you choose to pre-pay or pay for your insurance all at once.
Don’t forget that these plans cost less than half as much as coverage from the Marketplace because they don’t include the mandates that ObamaCare makes customers pay for. People with serious long-term conditions like cancer, heart disease, and diabetes should not use short-term plans.
This is because these plans don’t fall under the Affordable Care Act (ACA), so they have some pre-existing limits.
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. We hope we could clarify some Myths about Short-Term Health Insurance with this blog post for you.
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.