BusinessHealth ReformPolicy & LawPublic Health

Temporary Health Plans With Low Benefits Continue to Grow

1 Mins read
Have I got a deal for you?

Have I got a deal for you?

Have I got a deal for you?

Have I got a deal for you?

From Kaiser Health News (Consumers Drawn to Low Prices of Temporary Health Plans Despite Risks)

Long seen as a stopgap for people between jobs, short-term policies that focus on catastrophic coverage [are growing in popularity].  In exchange for their lower premiums, the plans come with sharp limits, including no coverage for pre-existing medical conditions. Many consumer advocates hoped interest in such plans would decline after the Affordable Care Act made broader coverage widely available, but short-term policies appear to be enjoying a resurgence, brokers say.

The article doesn’t directly address why the plans are continuing to sell. Here’s what I think:

  • The Affordable Care Act has increased awareness that everyone needs to have health insurance, so more people who would have otherwise had a gap in coverage are purchasing these plans instead
  • Some shoppers may think that the plans –some of which can be bought on line– are actually part of the Obamacare exchanges; they don’t realize that the plans don’t meet the essential benefits requirements
  • In states that have not expanded Medicaid, lower income buyers may be opting for temporary plans instead. The article didn’t provide data to analyze this possibility, but I’m interested
  • The plans are marketing themselves effectively, emphasizing affordability

Image courtesy of Idea go at FreeDigitalPhotos.net


By healthcare business consultant David E. Williams, president of Health Business Group.

Related posts
Global HealthcarePolicy & Law

Do HMOs Deserve A Bad Reputation? The Truth Of Managed Healthcare

3 Mins read
Have you ever heard people say that HMO health insurance is no good? It’s no secret that HMOs have a bad reputation,…
Policy & Law

Top 4 Important Things To Understand About Insurance

2 Mins read
When it comes to Medicare, the enrollment process can be a little tricky. That’s why it’s important to understand the relevant health…
Health carePolicy & Law

Elmiron Controversy Highlights Need For Longterm Clinical Drug Testing

4 Mins read
Elmiron has recently been the subject of a number of lawsuits brought about over claims that the drug causes vision problems and may lead…