Changes are Coming!
You may have already heard that early this month, the Departments of Health and Human Services, Labor and the Treasury published a final ruling on the Executive Order issued by President Trump last October. This rule addresses the plan LENGTH in regard to Short Term insurance plans—the new changes will begin on October 2nd of this year.
Changes to Come
- Up to 12 months of plan length duration allowed (vs 2 months in Missouri, currently)
- Allows for renewal up to 36 months
- New disclosures for consumers prominently displayed on materials
- Reduction of the Tax Penalty for not having “Minimum Essential Coverage” to $0 for 2019
Currently, if you’re interested in a short-term insurance plan (typically nicknamed “catastrophic coverage”), then you may only have the coverage for a two-month duration in Missouri, but new legislation will be extending that up to twelve months which means a lot more Americans will be dropping their expensive “qualified health plans” in 2019 and going in this direction. Many large insurance carriers aren’t happy about this, though…typically since the law requires that health plans cover all pre-existing conditions as well as medications, they feel that the “healthier” shoppers will go with short-term plans, while the “sick” candidates go for the other. Some things to consider before making a switch:
- Short term plans do NOT cover pre-existing conditions
- Do NOT cover prescriptions, but will offer a discount card
- Offer flexible deductible options, starting at $1000 per person up to $10,000
- Large, national PPO network of doctors, typically
- Do NOT cover preventive services (mammograms, physicals, colonoscopies, etc) vs Traditional Health Insurance mandated by law to cover these services at no additional cost
These plans are NOT for everyone…Please make sure to consult one of our advisors prior to making any change to your health insurance, but we welcome your calls and questions!