Many Consumers Not Qualifying for Major Medical Coverage Outside of Open Enrollment Turn to Short-Term Health Insurance, per eHealth Survey
According to a survey of eHealth customers who purchased short-term health insurance policies, seven-in-ten (70%) say that they considered purchasing a major medical plan instead of purchasing short-term coverage. Among those who tried to apply for major medical coverage, more than half (57%) were unable to do so because they had not experienced a qualifying life event as defined by the law. Many enrolled in short-term plans to provide basic coverage as a bridge between other plans or when waiting for traditional major medical coverage to begin.
While short-term health insurance plans do not meet the coverage requirements of the Affordable Care Act (ACA), they may appeal to consumers because, unlike major medical plans, they are generally available outside of the ACA's open enrollment period. They also tend to be more affordable since they offer more limited coverage. Short-term health insurance plans can still provide valuable financial protection against medical bills arising from unexpected covered illnesses or injuries and they may be the only coverage option available to some consumers outside of open enrollment.
"Short-term policy holders should consider buying major medical coverage during the upcoming open enrollment period," said
eHealth's survey of short-term health insurance policy holders was conducted
On choosing short-term plans vs. major medical health insurance:
-- More than two-thirds (70%) of respondents considered purchasing a traditional (non-short-term) major medical health insurance plan when shopping -- More than four-in-ten (41%) say that they first tried to apply for a major medical individual or family plan before enrolling in short-term coverage -- Of those who tried to apply for major medical individual or family coverage, more than half (57%) say that they weren't able to enroll in major medical coverage because they had not experienced a qualifying life event allowing them to do so outside of the ACA's open enrollment period -- More than a third (38%) say that they selected short-term health insurance because they wanted lower monthly premiums
A majority of short-term policy holders rated the following as "very important" to them in a health insurance plan:
-- Preventive medical care (50%) -- Prescription drug coverage (62%) -- Having access to a network of doctors and hospitals (71%) -- Benefiting from contracted rates on health care services to lower their bills (60%) -- Not having to pay the ACA tax penalty for being uninsured or underinsured (62%) -- Not needing to file their own medical claims (56%)
Most of these features and benefits are not available with short-term health insurance plans but only with individual and family major medical plans.
On customer satisfaction with short-term plans:
-- When asked to identify what they liked most about their short-term health plan, the most popular selection was the "affordability" of their short-term plan (68%); the second most popular thing about short-term plans was the ease of qualifying for coverage (31%) -- About one-third (35%) were satisfied with the coverage their short-term plan provided; an additional 29% report that they were "sort of" satisfied with the coverage their short-term plan provided -- More than eight-in-ten (82%) say that they were able to use the doctor of their choice with their short-term health insurance plan -- Among those who had already filed a medical claim with their short-term plan, more than half (62%) report that it was difficult to get paid back
About eHealth
For more health insurance news and information, visit the eHealth consumer blog: Get Smart - Get Covered or visit eHealth's Affordable Care Act Resource Center at www.eHealth.com/affordable-care-act.
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