Re-posted on 9/11/19
Short Term Health Insurance in Nevada
Before 2017, federal law had limited the duration that someone could have short-term health insurance coverage to 364 days, almost a full year. In 2017, regulations took effect that limited the duration of these short-term health insurance plans to just 90 days.
In October of 2017, President Trump signed an executive order that extended the duration that short-term health insurance plans could be available, letting people once again carry short-term health insurance for 364 days. Availability for these extended short-term health insurance plans may begin as early as July of 2018, and their popularity is expected to surge in 2019, as there will be no tax penalty for foregoing an ACA-compliant long-term health insurance plan.
How Is Short Term Health Insurance Different from Long Term Options?
Short-term health insurance is an alternative to ACA-compliant long-term coverage options. It is designed to provide coverage during a transition or gap between health insurance coverage, such as when you’re changing employers, aging out of your parents’ health insurance plan, or losing health insurance coverage through a spouse due to a death or divorce.
Short-term health insurance plans are typically a relatively affordable alternative for people who need emergency coverage. However, these health insurance plans are not required to meet the ACA’s coverage guidelines, and most don’t provide coverage for maternity care, preventative care, and pre-existing conditions.
How Some Are Using Short Term Health Insurance
Healthy individuals who are unwilling or financially unable to sign up for a long-term ACA-compliant health insurance plan may opt instead to sign up for a more affordable short-term health insurance plan. Some insurers even provide back-to-back 90-day policies, letting applicants go through an initial medical underwriting process and then re-enroll in a new plan every 90 days. Those who go this route will have uninterrupted health insurance coverage, albeit with fewer benefits, higher co-pays, and limited consumer protections.
The Downsides of Back-to-Back Short Term Health Insurance Policies
While many insurers are striving to make it easier for applicants to get affordable health insurance coverage via extended short-term health insurance plans, there are potential downsides to this back-to-back approach.
First of all, if you enroll in multiple short-term health insurance plans and develop a medical condition during the time you’re covered under one of the plans, you’ll likely have to enroll in an ACA-compliant health insurance plan once your pre-purchased series of short-term health insurance plans is up.
Additionally, if you became ill or suffered an injury, even if you met your out-of-pocket deductible during one term, your deductible would reset to zero when you re-enrolled. This could end up costing significantly (though not as much as you’d pay if you had no health insurance).
Before making changes to your health insurance, it’s important to speak with your Las Vegas Nevada health insurance agent. They will provide guidance to ensure that you choose a plan that meets your needs and budget.