Short-term health plans are of short duration that are designed to provide health insurance coverage to individuals, who are unable to have major medical plans due to some reasons. Earlier short-term plans in Texas ended within 12 months of the plan effective date, but from October 2018, the Trump Administration’s relaxed short-term health plans to have initial terms of up to 364 days. Besides, the short-term plans can be renewed for a total duration of 36 months. Though it is not essential for the health insurance carriers to offer renewals, as it is at the discretion of each carrier, still some of the health insurance carriers in Texas are renewing short-term plans for up to three years while some insurers have shortened the renewal duration.
Vital Statistics of Short-Term Plans in Texas
- In Texas, short-term health plans are offered for an initial term of up to 364 days and can be renewed for a total duration of up to 36 months.
- All the short-term plans sold in the Texas state have to provide state-mandated benefits.
- In Texas, at least nine health insurers are offering short-term plans in 2021.
- State-mandated benefits for major medical plans also apply to the short-term plans in Texas.
When Should Individuals consider Purchasing Short-term Health Insurance in Texas?
There may be some situation or time when short-term health insurance is the only feasible option left for individuals. Some of the condition during which short-term plan prove the best options are:
- If an individual misses the open enrollment period and he/she does not qualify for a special enrollment period.
- If an individual has recently changed a job and there is a waiting period for the employer’s health plan to become effective, then the individual can opt for a short-term plan.
- If an adult will reach age 65 in a few months and will become eligible for Medicare coverage, then for a limited period the person can enroll in a short-term plan.
- For individuals who are not eligible for Medicaid or a premium subsidy based on their annual income, then the monthly premium for an ACA-plan may be unaffordable and so they can alternatively opt for a short-term plan to have a level of health coverage.
Carriers offering Short-Term health Plans in Texas
In Texas following nine carriers are offering short-term health plans in the state:
- National General
- Everest Reinsurance
- Standard Security Life Insurance Company
- Companion Life
- Independence American Insurance Company
- United Healthcare (Golden Rule)
- United Security Health and Casualty