As we begin to close down the health insurance exchange open enrollment period for 2014, which ends on March 31, 2014, 2 other benefits are coming into play for some folks.
One such benefit is Dental Insurance, which we have written about before. While many have been focusing on health insurance, too many are forgetting about this valuable benefit. Please remember that dental disease can often lead to heart disease if not caught early.
The other benefit is one that is not talked about often. That is Short Term Medical Health Insurance Policies, also known as Temporary Insurance. These policies typically have terms of 30 days to 6 months and sometimes even 12 months. Before the Affordable Care Act (ACA), the prime demographic for this coverage were college-aged students who were not yet working but could no longer remain on their parents’ coverage. Now that the ACA rules stated that children can remain on their parents’ plans until they are 26, the demographics for Short Term policies had thought to be changing.
But not so fast! According to one Life Health Pro article, the Short Term market has rebounded as more of the young and healthy have found that this coverage is often more affordable than policies found through the health insurance exchanges. The example in the article was of a young worker who thought they were going to pay $300 per month for coverage, but with a Short Term policy only needs to pay $60 per month. That’s quite the savings!
In fact, one Illinois brokerage claimed to have sold more Short Term Policies in the last quarter of 2013 than ever before. An earlier Life Health Pro article quoted another health insurance brokerage firm as stating that “The total number of applications submitted during the fourth quarter was about 50 percent higher than the number submitted during the fourth quarter of 2012…(and for) the full year, revenue from premiums and premium equivalents was up about 30 percent.”
Another demographic that utilizes these policies are those that are between jobs that typically do offer health insurance benefits, and find the COBRA option cost-prohibitive.
Do you think you may have a need for this coverage?
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