Short-Term Medical Plans — Are They Right for You?

Short-term medical (STM) plans are extremely beneficial when used as they were intended – for short periods of time. And now, with the coronavirus, these plans are more important than ever.

Short-term medical plans are designed to provide coverage in case of an emergency for otherwise healthy people who are:

• Between jobs
• Waiting for employer group coverage to start
• A temporary or seasonal employee
• A dependent no longer covered under a parent’s plan
• Waiting for ACA open enrollment to start
• Can’t afford the high cost of ACA coverage
• An early retiree

 
STM plans typically provide some level of coverage for: doctor visits, urgent care and emergency care. There also may be coverage for prescriptions. Some plans also offer cost savings for seeing in-network providers.
 
Make sure to read the “exclusions and limitations” information before buying any plan. This will tell you exactly what’s covered and not covered. Options for these plans differ greatly depending on the insurance company. This is why it is vital for consumers to read the plans carefully or have an agent they trust to steer them toward the best plan for their situation.
 
Short-term health plans are not a good fit for everyone. If you’re considering whether a short-term medical plan is right for you, here are some pros and cons:
 
Pros:

• You can cancel coverage whenever you’d like without penalties
• You can choose a plan that covers you for as little as 30 days or as long as 36 months (depending on state law), and anything in between
• Many different plan designs are available, depending on the insurance carrier
  

Cons:

• No coverage for pre-existing conditions
  
• A medical questionnaire will be required to be approved for coverage
  
• Coverage is not mandated or standard, so plans vary greatly in covered services and costs
• Annual or lifetime benefit limitations

 
People who are generally in good health and are looking for an affordable plan for a short period of time would benefit greatly from looking into this type of benefit plan.
 
You can start by checking out Pivot Heath Short Term Medical plans. Allied National is a proud broker for Pivot Health Short Term Medical products. Pivot Health was named one of the top five providers of short-term plans according to the Investopedia article,  “The 5 Best Short Term Health Insurance Providers of 2020.” You can check out Pivot Health Short Term Plans at www.alliednational.com/short-term.

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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 Alabama. As the small group benefit experts, Allied works with small business employers to provide unique and affordable group health benefits.