Our staff will be working remotely on Friday, May 17th as our parking lot will be inaccessible for sealcoating.  We will return to the building on Monday, May 20th.  Thank you for understanding!

News & Updates

Back to Articles

3 Situations Where Short-Term Health Insurance May Be a Good Idea

In Michigan, Short-Term Medical Insurance plans are limited to 185 days in duration, and renewal is prohibited.  Further, Short-Term plans do not provide coverage for treatment related to most pre-existing health conditions (e.g., diabetes, asthma, cancer, etc.).   To be sure, Short-Term plans are far more restrictive in terms of the care and services covered when compared to an Affordable Care Act (“ACA”) compliant / Major Medical plan.

According to research from the Kaiser Family Foundation:

  • 43% of short-term plans do not cover mental health solutions;
  • 63% do not cover substance abuse treatments;
  • 100% of surveyed plans do not cover maternity care; and
  • 71% do not cover outpatient prescription drugs.

Nevertheless, Individuals and families who fall-into one of the below scenarios may want to consider enrolling in a short-term medical insurance plan – rather than an ACA-compliant / Major Medical plan.

  • Individuals Stuck in an Employer Waiting Period.   Many employers have a 90-day waiting period before health insurance benefits begin.  A temporary Short-Term health plan may help “bridge the gap” for workers who are between jobs or stuck in a new employee waiting period.
  • “Aging off” Parents’ Health Insurance Plan.  Low-cost Short-Term health insurance may be a good option for individuals turning 27 who do not have access to employer-sponsored health coverage, or who simply need a more affordable option.
  • Early Retirees.  Those individuals retiring before they turn 65 – under most circumstances – do not yet qualify for Medicare, but many earn too much household income to qualify for an ACA subsidy.  Those “budget-conscious, not-quite-yet-senior-citizens” may find Short-Term health insurance to be a cost-effective alternative option to enrolling in a more costly ACA Compliant plan.