Health Benefit Plans vs. Short term coverage

Health benefits plans: Before you decide to purchase a health benefit plan, it’s important to understand what these types of plans do and do not cover. A health benefit plan does not qualify as the type of coverage required by the ACA, meaning that you may still have to pay the tax penalty if you purchase a standalone health benefit plan.

Health benefit plans cover less especially regarding illnesses, medical procedures and hospital visits, so be sure to read your policy carefully to see what your plan will cover. Health benefit plans typically do not cover pre-existing conditions or the 10 essential health benefits required by the ACA.

Health benefit plans also do not have a deductible.  With that being said, there are fewer surprises when your medical bills come in the mail. Just know that having a health benefit plan you will have to pay out of pocket more.

Short-term insurance plan

Similar to health benefit plans, short-term health insurance does not meet the ACA’s minimum required coverage, meaning you may still have to pay the tax penalty even if you have short-term coverage.

A short-term insurance plan ranges from one to twelve months of coverage.  Short-term insurance plan is ideal for someone who is bridging an insurance gap until they can enroll in the market or during the special enrollment period.  Short-term plans do have deductibles, but they may cover a higher percentage of your medical costs.

Cosmo Insurance can help you navigate through a plethora of plans.  Call us today for a consultation today. 732-363-3888


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