Considering Short-Term Health Insurance Plans

Limited, or short-term, health insurance plans are an inexpensive alternative to a traditional major medical health plan and can be kept for up to three years. These plans are ideal for people who are generally healthy but make too much money to qualify for a subsidy under Obamacare.

If you do not have serious pre-existing medical conditions and you don’t qualify for a tax credit under the Affordable Care Act to help pay those high monthly premiums, these options are much cheaper than an Obamacare plan. For many people, these plans are an inexpensive alternative to traditional major medical health insurance. You’ll save thousands of dollars on premiums and also on medical care bills.

Some of these three-year plans give you doctor visits for a $30 copayment, generic drugs for $10 and urgent care visits for $60.

These plans are not for everyone. For example, some of these plans do not cover pre-existing conditions and they are not required to cover preventive care at 100%. But many Arizona residents can save thousands of dollars a year by enrolling in one of these plans.

Here is a real-life example using an Arizona family of five living in Flagstaff: The family has no pre-existing health conditions and makes too much money to qualify for a tax credit under Obamacare. The cost for the family to enroll in one of the most popular Obamacare plans from Ambetter or Blue Cross Blue Shield ranges from about $1,900-$2,600 a month. The cost for a non-Obamacare plan that we recommend ranges from about $800-$1,200 a month.

Aside from cost, another reason to consider a non-Obamacare plan is the limited network options that the Obamacare plans offer. Every Obamacare plan currently offered to Arizona residents uses a limited HMO network, and many of the plans require you to get a referral from your primary physician before seeing a specialist. If you travel outside the network, you will only be covered for an emergency. These short-term plans use much larger PPO networks, offering you the ability to visit a lot more doctors and hospitals, including the top-ranked Mayo Clinic, which is not included in the network for any Arizona Obamacare plans.

If you have had a serious health condition such as type 1 diabetes, cancer, a heart attack or stroke, HIV, emphysema, or Crohn’s disease, then Obamacare is your best option for getting coverage in the individual market. Obamacare plans are not allowed to turn you down for coverage because of pre-existing conditions. These short-term plans can deny you coverage based on your past health history. QCBN

By Ken Whitley

Need help deciding which plan is best for you and your family? Fill out our form at LehrmanGroup.com or give us a call at 928-813-7173, extension 19. We’ll help you determine which plans you qualify for, and your smartest option to take based on your particular situation.

Ken Whitley is the director of group sales at Lehrman Group.