Short Term Health Insurance vs. ACA Health Insurance Policies
Many customers ask me the difference between Affordable Care Act health insurance and Short-Term health insurance policies because there is such a HUGE price difference if an individual does not qualify for a financial subsidy.
WHY IS SHORT-TERM HEALTH INSURANCE SO INEXPENSIVE?
Well, a big reason is that the short term plans bring on healthy individuals because preexisting conditions are not covered so in return they have less high dollar claims being paid. With less claims being paid out, the more money the insurance company can save and the more money the consumer saves.
When someone asks, “How long should I keep my Short term health insurance plan?” I like to tell them Short term plans should just be kept for the short term or as long as one is comfortable! However, this is not to say some individuals do not stay on these policies long term.
Some people have found their high dollar claims on the short-term policies get denied due to one of the exclusions listed which is why I always tell everyone to read through their exclusions before they enroll or sign.
NO PREEXISTING CONDITIONS COVERED!
If you have a preexisting condition, tread lightly around these types of plans. Some individuals are 100% ok with the exclusions or not having their wellness covered because of the amount of money they are saving monthly.
Purchasing health insurance is different for everyone, it is a personal preference, different needs and wants for each person. I have listed some of the main differences between the two types of plans