While Short Term health (STM) insurance plans did not meet the minimum essential coverage requirements under the Affordable Care Act (ACA), also known as Obamacare, and resulted in a tax penalty, they did offer those who missed open enrollment an option to insure themselves.
The move follows the Trump administration's rule allowing such plans nationally. The legislation was authored by state Sen. Ed Hernandez (D-West Covina.)
STM plans were designed solely to provide temporary healthcare insurance during unexpected coverage gaps.
However, due to government regulations in 2017, short-term plans could only be sold up to 90 days. Not only were short-term plans restricted to 3-month periods, but they were also non-renewable. This means as Agents, we had to write our clients for three-months and then rewrite them for another three months with another carrier. While this made our job as an agent a little more difficult, short-term medical plans offered a healthcare option to our clients who did not meet the Special Enrollment Qualifying Event (SEP/QE) regulations.
Additionally, there were several great products with several great carriers that were designed solely to provide temporary healthcare insurance during unexpected coverage gaps.
What this means for you?
Currently, if you live in California and do not sign up for an ACA qualified health insurance plan, during the 2019 Open Enrollment period, you will be locked out of the IFP Insurance market place, unless you meet the
With this said, we urge our clients and our potential enrollees to not let their coverage lapse, as well as not miss the 2019 Open Enrollment period. If you should have further questions regarding this new regulation, please do not hesitate to give us a call at (408) 615-1280.
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