Alternatives to ACA Plans

The Affordable Care Act (ACA), also known as Obamacare, is a health care reform law that was enacted in March 2010. Some of the key goals of the ACA were to:
 

• Extend health coverage to millions of uninsured Americans.
• Expand Medicaid eligibility
• Create a Health Insurance Marketplace for individual health insurance, prevent insurance companies from denying coverage due to pre-existing conditions, and requiring plans to cover a list of essential health benefits.
• Allow lower-income families to qualify for subsidies for coverage purchased through the Marketplace.

 
However, even though there are some “pros” to the Affordable Care Act, there are just as many “cons” for an ACA plan, many of which led to significantly higher health insurance premiums for individual and small employer health insurance.

So, what do you do if you need health insurance and you can’t get coverage through the ACA Marketplace or through an employer?
 
There are a couple of alternatives to ACA plans you can explore. 

1. Short-Term Medical Plans
​One of the most significant advantages that short-term medical (STM) plans offer is their affordability. STM is designed to provide temporary coverage for every day medical expenses like doctor office visits and outpatient care and, optionally, prescription drug costs.

Another advantage that many short-term health insurance plans offer is the freedom to visit any provider or facility you choose. Most ACA plans enforce specific provider networks, limiting enrollees to seek medical services from a restrictive list of participating doctors and facilities in order for services to be covered. However, if you are most comfortable with a PPO, many short-term plans offer that option.

2. Fixed Indemnity Plans
Fixed indemnity plans, also known as limited duration benefit plans, are supplemental health insurance for those who have comprehensive major medical health coverage, but high out-of-pocket costs. These plans provide an extra layer of protection in the event of serious injury or illness by paying you a set amount of cash benefits to cover specific medical expenses. Because a fixed indemnity plan can be paired with any other insurance for added protection, you can use your benefits to pay for the coinsurance, copay and deductible amounts if you have an ACA plan or short-term policy as well as any medical care it doesn’t cover. 

Other advantages of a fixed indemnity plan:

• Typically come with low premiums
• Anyone is eligible
• Available all-year round
• Can cancel anytime

 
The ACA remains a hot political issue and is subject to changes every year. Changes in the health care field, along with changes to the political makeup of future presidential administrations and Congress, make it likely that the ACA will continue to change for years to come.
 
If you’re worried that you don’t currently qualify for an ACA plan or you may not be able to afford one, now is a great time to look into alternatives. You may find that coverage such as the plans listed above meet your needs at a price you can afford with the coverage and provider flexibility you want.

12721s1021

Allied National

Founded in 1970, Allied is one of the nation's oldest and most experienced third-party administrators. Allied National is a 90 Degree Benefits Company, a subsidiary of Blue Cross Blue Shield of Alabama. As the small group benefit experts, Allied works with small business employers to provide unique and affordable group health benefits.