5 Things to Know About Short-Term Health Insurance

Posted by Charlotte Barnes on July 25th, 2017

More and more of younger millennial consumers are turning towards short term health insurance policies. This trend is a bit surprising because there are many disadvantages in doing so now. The policies they spend their hard-earned money on, do not qualify under Obama’s ACA – affordable care act. It’s time to explore what is short term health insurance. Why people suddenly preferring gap insurance plans are over long term coverage meeting ACA – affordable care act requirements is confusing to say the least. Of course, there’s not enough relevant data to substantiate these claims. Insurers are not in habit of disclosing sales figures. However, online brokers including GoHealth and eHealth report an uptick in application for short term health insurance policies. eHealth says it received double quantity this year compared to last year.

PHIQ online service providers are reaching out to consumers across the country. The state wise consumers can pull data and information from vast digital database platforms to know more solutions and options open to them. Getting free short term health insurance quotes is a just a click away here. Consumers can understand the basic terms, visit market place as well as explore plans under standard levels of coverage. They can find out all about health insurance discount and subsidies helping individuals get financial safety covers. 

Think long before you decide to apply for such ‘gap insurance’ – there’s definitely some good, bad as well as ugly about it.

  1. Short term health insurance policies limit coverage and term

Since these do not qualify under ACA – affordable care act you might still pay a penalty for lack of health cover. Gap insurance cover a few major requirements only. Customers usually buy short term health insurance plan for 1-month with renewals up to maximum 1 year. Some insurers limit it to 3 months.

  1. Customers may not get it based on health history

Applying for short term health insurance policies and being denied may land you in deeper trouble. There is medical underwriting involved. More than 12 per cent applicants received rejections for medical reasons. ACA – affordable care act long term plans cannot deny coverage.

  1. Gap coverage with lower premiums have a catch

Millennials are paying as low as $ 110 on average for gap coverage according to eHealth. You can buy affordable health insurance policies that stipulate fewer benefits with pricey deductibles. Gap insurance customers paid average ,589 out-of-pocket expenses.

  1. Millennials preferring to go it private

A few key groups of millennials can be seen preferring to buy affordable health insurance policies. They probably failed to apply for coverage during annual enrollment period. Others may not have qualified for legal premiums subsidy or Medicaid. The predominant age group is between 18 to 34 years.


So-called ‘Gap Insurance’ policies other than conventional short term health insurance policies refuse to account for maternity leave. If you or your spouse becomes pregnant and need this coverage, you may be out of luck. Moreover, one more blow is that they do not cover for prescription drugs either.

Would you still like to know more on why Americans are turning towards short term health coverage?

Charlotte Barnes

About the Author

Charlotte Barnes
Joined: June 23rd, 2017
Articles Posted: 5

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