Short term health insurance plans have taken the spotlight in the news due to Trump announcing the extensions of short term plan durations. Rather than having a limit of 3 months, it has been extended to a year. If you are thinking of choosing between a short term plan and a long term insurance plan, there are many things you need to consider.
There are many differences between a short term medical plan and a long term medical plan, specifically the bronze plan. The variations between these plans range from what coverage is offered to the cost. First you should look at the cost of these two types of plans. When the two are compared, the short term insurance plan is significantly cheaper than a bronze plan. Short term insurance plans have always been cheaper than bronze plans, and the difference has gotten greater this year. Last year the average was about 50% savings (for a 30 year old), while this year it has jumped up to nearly 80% savings. If cost is the only thing you have to be concerned with a short term plan might seem like the right choice, but if you actually need medical insurance to cover other thing, short term plans can fall short.
Bronze plans are generally the Obamacare plans that people choose when they do not qualify for a subsidy. It offers the lowest premium option among the other metal plans for coverage, with the customer paying 40% when receiving care, and the plan covering 60%. But even if a customer chooses the silver, platinum or gold plans, they still end up paying more for benefits than if they had a short term plan.
In respect to pricing, a person who chooses to go with a short term insurance plan over the bronze plan will save almost double that or more than a bronze plan. An individual will save about $280 a month, while a family of 4 will save about $750 a month. If choosing the other metal plans, an individual will still save anywhere from $50-$100 going with a short term plan. Pricing for these plans are dependent on the age of the customer. Those who are younger in age will save more than other age brackets; specifically those who are in their 30s will save more than a person in their 60s.
There’s a reason short term medical plans cost less than major medical plans such as the bronze and that is because short term insurance offers less coverage than the metal plans. The plans are less comprehensive, so they do not include the essential benefits required under the ACA. Short term policies do not usually cover pre-existing conditions and will not cover preventative care benefits for maternity care. You can however enroll in these plans year round unlike the bronze plan which you have to wait until the annual open enrollment period.
Another major difference is that of you have the short term insurance plans, you might have to pay the tax penalty for the individual mandate. However, research shows that even if you have to pay the penalty, you will still save money if you go with a short term plan over major medical or any of the metal plans.
If you find that a short term insurance plan is right for you, or have general questions regarding it, we can help. EZ.Insure agents are highly trained for your region and will help you regarding any insurance questions, quotes, or signing up. To receive a quote, you can enter your zip code in the bar above, or contact an agent by calling 855-220-1144 or emailing [email protected]. We make the process easy for you without hassle, obligation, or cost.
