AFSLIC is excited to announce the launch of our new short-term medical (STM) program this October. Though we have been actively marketing STM since 2015, this marks the first time our policies will be available with limits up to $1,000,000 and for longer overall coverage periods.
In August of 2018, the Department of Health and Human Services announced the removal of the 90-day limit on STM policy duration, effectively bringing an STM policy to a maximum of 364 days. Effective October 2018, members are able to hold consecutive policies for a total of 36 months of coverage, depending on State laws. The reasoning behind HHS’s decision to extend STM durations is to bring more affordable health care options into the market, with millions of Americans being left out of Obamacare, simply due to affordability.
Short term medical is an insurance with coverage for a defined time. The key benefits include the ability to sign up all year round, the flexibility to see any doctor of your choice for covered services, and it’s affordability in comparison with Obamacare plans. Short Term Health Insurance plans have broad network coverage that includes acceptance at many top hospitals and cancer centers in the U.S for benefits such as doctor and specialist visits, lab tests, X-Rays, hospitalization, & emergency care.
While these plans are an affordable alternative, they are not for everyone. It is important to note, STM is not considered ACA compliant and is not meant as a long term replacement for major medical coverage. If obtaining an STM policy in 2018, it is important to speak to your agent about the limitations and potential tax penalties that are included with your policy, including the exclusion of pre-existing conditions.
Overall, AFSLIC is thrilled to be expanding our portfolio of Short Term Medical products available to our members. With flexible plan designs, longer durations, and increased policy maximums, we are confident in our ability to meet the wide range of healthcare needs in the market today.
