Why you should think twice about a short term medical plan.
These types of plans have become quite popular since the Affordable Care Act (ACA, aka, Obamacare). Our Insurance Brokers educate our clients before they let them buy a Short Term Medical Plan. The downfall of buying a STM (Short Term Medical) is that it ends in one year. Yes, there are plans that allow you to renew each year, but it is still a STM. This means you start over each year. Generally, healthy people might benefit from a short-term plan’s low premiums as long as they don’t need health services. And in most cases, short-term health insurance companies can and will limit the number of times you can repurchase coverage in a row. It can also provide you with some coverage but in the long run can just lead to substantial out-of-pocket costs. Something that you should think about, especially if you are going to start a family. Consider the situations too when you had a pre-existing condition that wasn’t covered the first year? Unlike a fully underwritten plan that allows you to be covered in the second year, a STM will not. It will be like having a new plan each year. What if you had a medical event that now wouldn’t be covered the following year because it is now a pre -existing condition? You need a plan that will not drop you! These are just a few things to think about.
Is a short term medical plan right for me?
Fredrick Insurance Brokers are committed to educating and empowering our clients. This is our area of expertise and we want you to have a policy that works for you and provides the best coverage available. There is no perfect plan. If there were, none of us would be able to afford it. However, there are options available to you that provide value by offering first dollar coverage on the first day. You can rest assured that you won’t be kicked off the plan if you have a medical event. In fact, you can keep your plan until you are 65. At that time, we will find you the best Medicare Supplement available. Contact us before you purchase a Short Term Medical plan and we can show you the coverage and rate differences. Please don’t hesitate to request a quote from us – no strings attached.
Ultimately, it is your decision, but you don’t know what you don’t know. We are here to educate you on Health Insurance so you can feel confident in your plan and know how to leverage it to your advantage. Health insurance is not sexy, but it is necessary. It is our job to protect you so you don’t get the wrong plan and regret it when it is too late.
