Trump Administration Releases Final Rule On Short Term Medical Plans

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

Tanya L. Burns, LUTCF, RHU, LTCP

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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