The “New” Catastrophic Plan
Before the ACA, it was understood that a “major medical” or “catastrophic” plan could be something that younger, or even healthier adults and children could purchase—a way to minimize high premiums while placing greater risk on the insured. It was an excellent choice, in my opinion, for those who had few health risks—people were “ok” paying for their services out of pocket under this plan, since in return, their health insurance premiums were low.
Fast forward to “post-ACA” America, and these plans are long gone….the Qualified Health Plans we have available to this same group of healthier adults and children are not only extremely high deductible, but completely out of reach, financially. No one wants to take a high deductible plan if there’s nothing in it for them, meaning, where’s the trade off? Not only are premiums outrageously priced, but deductibles are totally out of reach and other than preventive services, everything is out of pocket initially.
Enter the “new” catastrophic plan, or commonly referred to as a “Short Term Health Plan”….they existed prior to the ACA, but it’s seeing higher numbers of enrollments today because of its affordability. Here are the basics of a short term plan:
- You select the duration of your plan (can be 1 to 2 months in Missouri, but then renewed after that)
- Once your selected deductible is met, you pay a percentage of covered expenses up to the out of pocket max
- Significantly lower premiums compared to the ACA
- covers hospital services, ambulance, urgent care, doctor visits, surgery, prescriptions and more
- NO pre-existing conditions are covered, and minimal health questions are asked on the application
- Don’t have to wait until the ACA’s “Open Enrollment” to get insurance—can enroll at any time of year
- Ability to manage premium by modifying deductibles, coinsurance, and added benefits
If you’re without health insurance, and need some coverage to bridge you to the next open enrollment window in November, call us today to learn if short term insurance might fit your needs!
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