The health insurance market has changed dramatically under the Affordable Care Act and it continues to change every year. 2016 brought a greater than anticipated rise in the cost of health insurance premiums across the board and many Americans are now wondering what other options are available. Although in the past short term health insurance plans were primarily geared toward individuals who needed to fill a gap in health coverage due to a move, a job change, or recent graduation, many people are now taking a closer look at the benefits of temporary health insurance policies.
In terms of affordability, short term health insurance plans are typically much less expensive than regular health insurance policies. Because they do not have to cover the 10 essential benefits required under the ACA, short term plans have much lower monthly premiums and are an excellent way to make sure you have coverage in case of an unexpected accident or illness. Many temporary plans also include copayments for doctor visits as well as prescription drug coverage.
Because temporary health plans are not ACA approved Qualified Health Plans, they are not subject to the same guidelines as regular health insurance policies. For instance, much like Dental Insurance or Home Health Care policies, short term health insurance can be purchased at any time during the year, meaning you do not have to wait for the Annual Enrollment Period. In addition, you can usually have coverage effective as soon as the next day and can keep your policy in effect from 1 to 11 months.
Although temporary health plans are not ACA compliant and therefore will not keep you from incurring a tax penalty, many Americans are simply doing the math. Very often, it is still more affordable to pay a penalty and a lower monthly premium than to try and keep up with the rising costs of regular health insurance, making temporary coverage a more viable option. For individuals who have an exemption from the federal tax penalty, short term health insurance can be a great solution. If you are currently uninsured and looking for an affordable, accessible option, a temporary health insurance policy could be the answer.
For more information on North Carolina insurance coverage, please visit our website at www.nchealthplans.com or call our toll free number 888-765-5400 and speak with one of our experienced and professional agents.