AMAC Magazine Exclusive – By Sabrinah Cave
Short-Term Medical insurance, also known as Short-Term, Limited-Duration Insurance (STLDI), is designed for people under age 65 who need fast, affordable health coverage during a temporary gap. It offers an alternative for individuals who missed the Health Insurance Marketplace Open Enrollment (November 1 to January 15), are between jobs, or are waiting for their Medicare to start.
If any of the above situations apply to you, these plans can provide you with peace of mind in the interim.
How Short-Term Medical Insurance Works
Short-Term Medical coverage typically lasts one to twelve months, depending on your state. Because these plans are not required to follow Affordable Care Act (ACA) standards, insurers can offer them at much lower costs. Since there’s no set enrollment period, you can purchase it anytime during the year and cancel whenever you wish—without penalty!
What Do Short-Term Medical Plans Cover?
Benefits vary by plan and insurer, but most Short-Term Medical plans cover the following:
- Doctor’s office visits, x-rays, and lab tests
- Emergency room services, hospital stays, and surgeries
- Prescription drugs (in select plans)
Some policies also provide limited coverage for preventive care and pre-existing condition coverage after a waiting period, but it’s important to note that these services are not guaranteed.
What’s Not Covered by Short-Term Medical Insurance?
Unlike ACA Marketplace plans available through Healthcare.gov, Short-Term Medical plans generally do not cover the following items:
- Maternity and newborn care
- Mental health or substance abuse treatment
- Vision and dental care
If you need these services or qualify for subsidies, an ACA plan may be a better fit.
Is Short-Term Medical Right for You?
Short-Term Medical insurance is a cost-effective safety net for people under age 65 who need coverage quickly. Whether you’ve lost your job-based coverage, aged out of a parent’s plan, or missed the ACA enrollment window, Short-Term Medical insurance provides a practical solution.
As previously mentioned, these plans don’t have to meet ACA requirements, so they may not be ideal for individuals with chronic health needs or those who qualify for Marketplace subsidies. Always weigh out your options before committing, and work with a trusted AMAC insurance agent to make sure your coverage matches your needs.
Need Coverage Fast?
Contact AMAC’s Individual Major Medical insurance team today to review your options and secure the Short-Term Medical plan that works best for you. Call 888-761-8585 or visit amac.us/stm25
I found my two year gap years before Medicare kicked in to be hugely expensive. Obamacare and the short-term medical care quotes, were just as much as my COBRA. Nearly, 1k a month. So I just kept the COBRA.
Medicare is also a ripe off, and not inexpensive at all. Most especially for rural residents. Firstly, the Advantages plans are going away in many areas and/or prices going up. Then in areas with limited medical options, an advantage plan, can be a death wish, if you get something serious. (My neighbors, rare cancer.) He has to fight to get proper care in his advantage system. Be mindful of these limitations.
So what are people over 65 doing for health care these days?