By Tanya L. Burns, LUTCF, RHU, LTCP
Tanya L. Burns and Associates, Inc.
Article submitted by Tanya L. Burns, LUTCF, RHU, LTCP, to share a health insurance update. If you’d like to submit an article, email Kelly Sawyer at firstname.lastname@example.org.
In early August, the Trump Administration issued a Final Rule expanding the availability of “short-term” health plans. Here’s what you need to know:
Short-term health plans do not satisfy the requirement for “minimum essential coverage” as required by the Affordable Care Act (ACA). While the Tax-Reform Law passed in December 2017 “zeroed out” the Individual Mandate Penalty beginning January 1, 2019, purchasers of the short-term medical plans will not be in compliance with the Individual Mandate and may owe a penalty for the 2018 tax year.
The Good News – The Administration expects these plans to be 50% to 80% lower cost than plans in the Individual Market. These plans will be very attractive to the younger and healthier individual.
More Good News – Under the Final Rule, these policies can now last up to 364 days (much better than the previous 90 days). Further, consumers will be able to renew these plans for a maximum of 36 months. Once the 36-month duration is “exhausted” with the first insurer it could be possible to move to another insurance carrier for another 36-month renewal duration. Previously these plans were not renewable.
Important Underwriting Facts – Unlike the individual policies, the short-term policies exclude coverage for maternity, pre-existing conditions and preventive care. The applicant must answer a short series of medical questions to qualify for coverage. If any of the medical questions are answered “Yes” – coverage cannot be written.
We are looking for every quality option available to be able to offer affordable coverage with Quality Insurance Carriers (aka Golden Rule Insurance Company – a United Healthcare Company). Stay tuned for more information to come.
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