Short-Term Insurance Plans Poised To Make Comeback

GOP lawmakers are looking for ways to repeal at least certain parts of Obamacare as soon as possible. They include coverage mandates for some services and the requirement that everyone be covered or face a fine, according to Kaiser Health News. That’s fueling renewed interest in short-term insurance plans.

The plans have been on the market for years as a product for people who’ve just lost their jobs or graduated from college. Short-term plans provide coverage for six months or less and are bare-bones. They usually don’t include coverage for pre-existing conditions or maternity care, among other things. Prescription drug coverage is often not covered, as well. But they cost a lot less than plans that do offer those things.

They became more popular under Obamacare because of a loophole in the ACA that defined short-term as coverage lasting 364 days or less. Such plans did not have to adhere to ACA mandates, Kaiser Health News reports. Short-term plans charge an average monthly premium of about $125, “compared with $393 for someone who bought a regular Obamacare plan and didn’t qualify for premium subsidies,” according to Kaiser Health News.  

Source: Kaiser Health News