eHealthInsurance.com Investor Relations – News Release
eHealth report: Short-term health insurance is gaining in popularity among older consumers; half of policyholders say they would be uninsured without it
“Short-term plans serve an important function for consumers
transitioning between jobs or with other temporary coverage needs, which
is how most people continue to use them,” said eHealth CEO
- Demand for short-term plans has steadily increased since the ACA’s implementation: Short-term applications accounted for 57 percent of all combined short-term and major medical plan applications received by eHealth in 2017, up from 47 percent in 2016.
- Need for temporary coverage and affordability drive interest in short-term policies: Sixty-one percent of survey respondents said they chose short-term policies primarily because they needed coverage for a limited period, while 27 percent did so because it was more affordable than other options.
- One quarter chose short-term policies because they missed open enrollment: Twenty-six percent of respondents said they bought short-term coverage, in part, because they had missed open enrollment under the Affordable Care Act.
- Short-term plans are becoming more popular among older consumers: Since 2015, the share of people between the ages of 45 and 64 buying short-term plans has increased from 21 percent to 25 percent.
- Most short-term policyholders consider ACA coverage first: More than half of respondents (52 percent) said they considered buying an ACA-compliant health plan before turning to short-term coverage. About half (49 percent) believed they would not have qualified for government subsidies under the ACA.
- Half of policyholders say they would be uninsured without access to short-term coverage: Fifty-one percent of policyholders said they would not have health insurance without short-term coverage; only 12 percent said they would enroll in ACA-compliant major medical plans if short-term policies were not available.
- Nearly three-in-ten short-term policyholders use their coverage: Twenty-eight percent of eHealth survey respondents said they received medical care while covered under a short-term policy, most commonly for a sick visit to the doctor’s office.
For more health insurance news and information, visit eHealth's Consumer Resource Center.