The concept of a short-term health insurance plan was brought to provide some respite to people who lost their health coverage in the middle of the year due to some major issues and have to wait for a few months for the open enrollment period to commence to enroll in a new health plan. However, the Affordable Care Act does not consider short-term health insurance coverage as adequate from 2014 to 2018, at the end of 2018 the Congressional Tax Cuts and Jobs Act decided to consider this insurance into the definition of acceptable coverage. The Federal legislators from the following year extended the duration of these plans from 3 months to 1 year.
- Florida does not have state regulations for short-term plans, so federal regulation is applicable in the state.
- Health insurers can offer short-term plans with an initial term of up to 364 days and can be renewed for a total duration of up to 36 months.
- Florida no longer limits pre-existing condition exclusion on short-term plans that last more than six months.
- Seven health insurance carriers are offering short-term plans in Florida.
When Individuals should consider purchasing short-term health insurance in Florida?
There are some times when short-term health insurance is the only realistic option for many individuals to obtain health coverage. Despite being a temporary coverage option, short term plans attract individuals in the following conditions:
- If individuals missed the open enrollment for the ACA-compliant plan and do not qualify for a special enrollment period.
- If a person has recently joined a company that has a waiting period of up to three months before he/she can enroll in the employer’s healthcare plan.
- If an individual will soon be of 65 years and will become eligible for Medicare within a few months, but in the meantime do not have other coverage options.
- Individuals already enrolled in an ACA-complaint plan but few weeks are left for the coverage to kick start.
- Individuals who are not eligible for Medicaid or for a premium subsidy that reduces coverage cost may find ACA-compliant plans too costly.
Health Insurers Offering Short-term Plans in Florida
Seven health insurers were offering short-term health plans in Florida in 2020: