Short-Term Major Medical policies are just what their name implies.  They are major medical insurance policies intended to cover insured individual(s) for a short-term duration.  Generally speaking, STMM policies are written for one (1) to six (6) month terms.  STMM policies do not usually contain all the “bells and whistles” that your permanent major medical plans do, but are often adequate enough to cover the “what ifs” in life.

STMM policies are not a one-size-fits-all type of contract.  STMM policies have unique attributes that set them apart from permanent forms of insurance, including, but not limited to:

  • NOT guaranteed issue
    • applicants can be denied
  • NOT guaranteed renewable
    • a carrier does not have to write a subsequent policy
  • NOT Affordable Care Act (ACA) “Qualified” plans
    • do NOT contain all of the Essential Health Benefits (EHB)
    • WILL subject the covered individual(s) to the Individual Shared Responsibility penalty
  • Do NOT cover pre-existing conditions
  • Often Indemnity-type plans
    • no contracted network of providers
  • Often no 1st dollar benefits
    • no copays
    • deductible and coinsurance

STMM policies tend to appeal to the healthy consumer who doesn’t wish to pay the cost associated with a permanent health insurance plan.  Despite the ACA mandate that requires most individuals to have qualified health insurance coverage – STMM polices still remain a popular choice.  We can help you make the decision with just a few clicks of your mouse.  Click HERE to get started!

 

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