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