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Frequently Asked Questions

What does short-term health insurance cover?

Short-term health insurance is major medical insurance for a set period of time. It covers doctor visits, hospitalizations, emergency care, lab tests, x-rays, and other common medical needs.

Is short-term health insurance “creditable coverage” under federal law?

Yes, short-term health (STH) insurance is considered “creditable coverage” under the Health Insurance Portability and Accountability Act (HIPAA). Under federal law, if you have a gap in insurance coverage longer than 63 days, and you are diagnosed with a serious illness or become pregnant during that time, you will lose your health insurance rights to have these conditions covered by your next health insurance plan. Instead, the new health plan can impose a wait period of several months before you will be insured for these conditions. That is why it’s important to have continuous health coverage under a “creditable” plan, such as short-term health insurance. Illnesses and conditions developed while on a creditable coverage plan will be covered on the date your new health plan becomes effective.

If you have been an customer, and require a Creditable Coverage Certificate (CCC) please contact us at: (800) 314-5594

Is short-term health insurance Obamacare?

No. Short-term health insurance is a streamlined insurance plan. While it includes many benefits, it does not cover all 12 of the minimum essential benefits that the Affordable Care Act plans are required to cover. For example, in most cases, short-term health insurance will not include maternity care or mental health services.

In addition, short-term health insurance involves an application. Depending on your health status, your application may be declined or your pre-existing condition may be excluded. Obamacare guarantees that all applicants and their pre-existing conditions will be covered, no matter what your health status.

When can I apply for short-term health insurance?

You can apply at any time. There is no fixed open enrollment period. On, you can submit your application and, if approved, your insurance can be effective within as little as 24 hours.

Can short-term health insurance be renewed?

In some states, you can reapply for new short-term health insurance. This is not the same as renewing a plan. You must submit a new application with your up-to-date health information and the carrier will determine whether to underwrite a new policy for you; your application may be declined.

What about the Obamacare tax?

The Obamacare tax is the “Shared Responsibility Tax” and applies to individuals who have gone without an Affordable Care Act plan (such as Obamacare or employer-based plans) for three months or more within a calendar year. If you have a term health plan for a period of less than three consecutive months, and Obamacare coverage for the remainder of the year, you may not be subject to the tax.

For term health plans that are three months or more, the tax is prorated based on the number of months you went without ACA coverage.

For 2016, the tax is the higher of the following two amounts:

  • $695 per person for the year, but only $347.50 per child under 18, up to a maximum of $2,085
  • 2.5 percent of taxable household income, capped at the national average premium for an Obamacare bronze plan in 2016

There are a number of exemptions to the tax. You can see if you qualify for one here:

What about cancelling a plan?

Within the first ten days of the effective date of your plan, you can cancel and will receive a full refund. For cancellation beyond the ten days, you simply email or call us with your reason for cancelling. We try to handle your request within 24 business hours.

What about pre-existing conditions?

Typically, short term health insurance costs less than Obamacare because it doesn’t cover pre-existing conditions. Also, there is an application with health questions that can make you ineligible.

What conditions on the application will make me ineligible?

Within the last 5 years if you have been diagnosed, treated, or taken medication for any of the following conditions, term health insurance cannot be issued: Cancer or tumor, stroke, heart disease including heart attack, chest pain or had heart surgery, COPD (chronic obstructive pulmonary disease) or emphysema, Crohn's disease, liver disorder, degenerative disc disease, rheumatoid arthritis, kidney disorder, diabetes, degenerative joint disease of the knee, alcohol abuse or chemical dependency, or any neurological disorder; HIV or AIDS; or if you are now pregnant or in the process of adoption.

If you are looking for insurance to cover your pre-existing conditions, we can refer you to an agent who can help you find a health insurance plan that to cover these conditions:

  • For ACA/Obamacare Plans: 888-475-8043
  • For Medicare Plans: 888-641-7553

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