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Why Short Term Health Insurance Plans Have Three Month Terms

For several decades, Short Term Health Insurance has been one of many options for consumers. Short Term Health Insurance was ideal for those who were without insurance and needed a temporary solution, with plans ranging from one month to just under twelve months. In 2016, the Federal Government created a rule limiting the length of Short Term plans down to less than three month. The rule, Regulation CMS-9932-F, became effective on April 1, 2017. Although the change restricted the length of Short Term Health Insurance plans, consumers in most states are able to reapply every three months to obtain new coverage.

In October of 2017, President Trump signed an executive order, “Presidential Executive Order Promoting Healthcare Choice and Competition Across the United States,” that among other things, required the department of Health and Human Services to create a plan that would bring back longer coverage terms for Short Term Health Insurance plans.

There has yet to be any action on this portion of the executive order, but we at AgileHealthInsurance believe that longer term STM plans will again be available to consumers sometime in early 2018.

Although plans are still restricted to terms of less than three months, most consumers find that the reapply process on is easy and quick. Get a quote now, and see how a Short Term Health Insurance plan might be right for you.

Short Term Health Insurance is health insurance outside of the Affordable Care Act ("Obamacare"). Health Benefit Insurance is comprised of fixed indemnity and may include supplemental insurance products and non insurance supplementary health products/services; it is not major medical insurance. Neither Short Term Health Insurance nor Health Benefit Insurance cover pre-existing conditions, they do not include all ten of the minimum essential benefits of Obamacare, and you may be subject to the Affordable Care Act Uninsured Tax (The 2017 Congressional Tax Reform Act does not eliminate this tax until 2019). You can learn more here.