Temporary Health Plans With Low Benefits Continue to Grow

June 8, 2015
60 Views
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.

You may be interested

Why Universal Healthcare is the Key to a Healthier and More Productive Society
Health care
339 views
Health care
339 views

Why Universal Healthcare is the Key to a Healthier and More Productive Society

Helen Heather - August 23, 2017

The United States remains the only country in the world without a universal healthcare system. Many critics have stated that…

Care On The Road: How Telemedicine Can Reach Truck Drivers
Mobile Health
13 views
Mobile Health
13 views

Care On The Road: How Telemedicine Can Reach Truck Drivers

Larry Alton - August 21, 2017

Telemedicine is considered a powerful tool for individuals living in rural areas, far from adequate services or in need of…

Where Is The Balance? Pushing Back Against Consumer Health Tech
eHealth
3 views
eHealth
3 views

Where Is The Balance? Pushing Back Against Consumer Health Tech

Larry Alton - August 18, 2017

When Republican Congressman Jason Chaffetz glibly remarked that Americans struggling to afford insurance should choose between that and their smartphones,…