Expanded Short Term Health - 364 day short term
Same as it ever was!
Short term health plans are about to do a 360 turn around.
It's going to have a huge impact on the health insurance market.
Not just short term but the ACA or Obamacare market.
364 days of short term changes the whole landscape and use of short term health.
Let's look deeper at what this means for people who need the coverage.
You jump right to the quote for 364 day short term here:
Otherwise, you can jump to any section here:
Let's get started.
We only have 364 days!
The length of time you can have a short term health plan is very important.
The very nature of the coverage is based on "term".
So what is "short"?
Before 2014, it was up to 364 days in most States.
Obamacare came into effect then.
Many short term companies left the market.
The thinking was that everyone would go with the Obamacare market.
Also, any alternative would weaken that market.
To further this trend, in 2015 Obama restricted the length of short term plans to 90 days.
This was further pressure to strengthen the Obamacare market.
Essentially, force more people to the marketplace.
Fewer options outside of it.
It didn't really affect the enrollment numbers of enrollment which started to stagnate and even drop in 2015 for Obamacare enrollment nationwide.
Then came Trump's executive action.
On August 2nd, Trump announced an expansion of short term health plans in 3 key ways:
The first item is the most significant.
What does this mean?
It means that you can purchase a short term health plan and keep it up to 364 days.
The maximum amount of time you can continue those 30 days blocks will be 364 days.
That's the expansion.
Keep in mind that health insurance is still regulated at the State level.
Some States may choose not to approve plans with the 364 day rule if they want to support the ACA plans.
This will largely fall along political lines.
You can always run your quote below to see if 364 days is available in your area:
You can learn more about the Trump expansion of short term health here.
So...this is the big question mark.
As we mentioned above, many companies left the short term market.
We used to have most of the Blue's (Blue Cross Blue Shield) across the US.
Added in were some of the bigger nationwide carriers and even one-off smaller companies that focused on ancillary health plans like short term.
Most of them left in 2014 or 2015.
Currently, we have these companies with varying State availability:
They both have offered 90 days prior to the change over.
We expect them to adopt the 364 days as soon as possible and where possible.
The State map for short term plans is here:
As new companies come on the scene, we'll add them to the quote tool.
So...when can we get the plans?
Trump made the announcement August 2nd.
That being said, we expect them around Jan 1st in time for open enrollment.
The companies have to design and price the plans.
They then get submitted to the State's DOI (Department of Insurance).
There's some haggling back and forth.
Some State DOI's will bar the new expansion...generally along political lines.
All told, it usually takes 6 months to bring a new plan to market.
How do we pick the best plan?
We have an entire article on how to pick the best short term health plan.
The short term companies offer very comparable benefits and options.
That's a function of short term in general...it's really a commodity.
A quick refresher with the 364 days expansion.
The current comparison is here:
How will 364 affect this?
It might change the "why" in people buying short term coverage.
At 90 days, it's more for catastrophic coverage during gaps in insurance:
The typical uses of short term when you can only get 90 days.
Essentially, short term became a low cost way to address gaps in health insurance coverage.
It will become a secondary market for people who can't afford Obamacare!
Let's look at that piece.
Essentially, the 2014 Obamacare law forced one marketplace.
It did the following:
Other health plans largely fell away since they would be subject to the penalty.
This is partially why short term companies left in droves.
So why even have a need for 364 short term if there's Obamacare?
Obamacare really is a tale of two cities!
If you have a tax credit, it's been great.
The tax credits are designed to go up as insurance rates go up.
If you don't get a tax credit...it's been brutal.
My family rate started at $400. It's now $1400/month.
Yes, the plans are richer.
But only if you can afford to have them.
There's a large swath of the population that doesn't qualify for tax credits but there's not that far over the income limit.
Especially in expensive States like California.
Lots of these people would go with the new 364 day short term to get catastrophic coverage if available.
More importantly, lots of people who have Obamacare may switch over.
That's a big deal.
Let's look at why.
Health insurance is all about risk pools.
Better in terms of cost.
If you can spread a $100,000 heart attack over 100,000 people, it's only $1 per person.
Conversely, if you can only spread that same medical expense over 100 people, is $1000 per person.
Furthermore, if you have spread 100 heart attacks over 100,000 people, it's $1000 per person.
Health insurance is just pass through by nature.
Your monthly costs reflect the underlying expenses.
The kind of people that would get 364 day short term are most likely healthier.
Otherwise, they might stay in the Obamacare "pool" where benefits are mandated.
Rates will reflect this.
People with a tax credit won't feel it.
People without a tax credit will and more of them will make the decision to go to short term.
It then becomes a cycle.
We were already on that cycle prior to the 364 day expansion but it will a accelerate.
Make sure to read how short term health plans are different from Obamacare plans here.
If available in your State, you can quickly quote 364 day short term here:
The rates are based on age, area, and plan choice.
There's no cost for our assistance at 800-320-6269 or by email.
Enrollment fast, easy, and online.
You can access the application right through the Quote link above.
Please let us know if we can help in any way.
Learn more about common questions regarding short term enrollment here.
Big changes coming to the short term health market.
And the Obamacare market as a result.
Especially if they don't qualify for a tax credit.
This will have an effect on the Obamacare market for sure.
The tax penalty largely goes away in 2019 which will speed the process.
The two types of plans are very different so it's important to understand how they differ here.
Again, there is absolutely no cost to you for our services as licensed Short term health agents. Call 800-320-6269 Today!
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