Short Term Medical health insurance has long been offered to individuals through the non-group market and through associations. This product was designed as a temporary gap in health insurance coverage. These policy are sometimes classified as "LIMITED".
Important things to know about Short Term Medical Plan are :
Underwriting- are usually medically underwritten- "You can be charged a higher priced or turned down if you have a pre-existing condition such Stroke, Heart Disease, Diabetes, and more
Pre -existing Condition Clause- may be included. Insurance company may investigate to determine whether your condition is newly diagnosed
Lifetime Limits - many policies cap covered benefits at $2 million or less
Higher Out of Pocket Cost- If you suffer a critical illness your financial liability is increased. For example, plans may require cost sharing in excess of $20,000 per person per policy period, compared to the ACA-required annual cap on cost sharing of $7,350 in 2018
Less Claims Paid- top insurers of all short-term policies market average loss ratio was 50%. ACA (Marketplace) plans are required to pay out at least 80% of premium revenue for claims and related expenses.
Short Term Medical plans should be carefully analyzed when being considered for purchase.
Short Term Medical Plan can be a great fit for the right situation.
It is important to review your options with an experienced broker with expertise in this field to help you make an educated decision. We recommend you speak to one of our brokers by
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