Americans look for lower-cost alternatives when it comes to their healthcare needs. Those who do not need a huge demand for medical services to be covered have other options. Even those who have some medical requirements on a monthly or quarterly basis are okay with less coverage if they save enough on premiums. The good news is alternative plans, and they will continue to grow in demand as the year 2018 continues.
The Trump administration signed a decree in the fall of 2017, demanding that short-term care plans be extended from the current 90-day limit on all 365 days, as it once was. These types of policies do not exist to replace ACA plans, but to provide individuals and families with more opportunities to meet their health needs.
This is great news for millions of Americans who do not qualify for federal health subsidies and really cannot afford the premiums for ACA plans. By freeing some of their hard-earned dollars, they can return it to the economy, retirement, college, or whatever they need.
Short-term plans are non-ACA-related health plans that are not required to cover pre-existing conditions or defined by ACA (Obamacare) mandated for basic health benefits (EHB) that are covered by plans approved by ACA.
These benefits include:
- Care for pregnant women and newborns
- Mental Health and Substance Abuse Services
- Special preventive services, such as routine exams, mammograms, screening for cancer, etc.
- Pediatric services (oral care and vision)
Short-term plans are a great option without the above policy coverage. Insurance should be for sudden, expensive things that you usually could not afford on your own. Look at your homeowners and auto insurance. They provide unforeseen, costly risks that you cannot afford to take on. Short term medical plans do exactly that.
On May 1, there will be a short-term extension of the medical plan from the current maximum for a maximum of 90 days to 365 days. After this date, you can contact the insurance company that offers a short-term plan that does not have a maximum daily limit of 90 days.
Another disadvantage of 2018 is the individual mandate. The short-term medical plan is not an ACA agreement in accordance with the IRS and will be subject to a tax penalty when filing your taxes in 2018. There are other ways to get around this. You will need to find a specialist in this area to get more information. The tax year of 2019 is leaving.
