During the COVID-19 pandemic, we have seen a significant uptick in uninsured inquiries on Short Term Medical (STM). As with most disruptions like this type of emergency, people have a heightened awareness of their health and financial risks while weighing it with affordability.
The largest groups accounting for over 60% of the new enrollments into STM are the long-term uninsured and those who have recently lost employer coverage. Although COBRA, State and Federal programs are options, many still choose STM as a more affordable ‘bridge’ for their health insurance between employment or Medicare.
There had been some early predictions that people with ACA plans might be dropping their plan to choose a more affordable STM plan. However, recent reports indicate that less than 6% of people on an ACA enrolled into STM coverage; this is most likely due to subsidies or pre-existing conditions. Further complications, such as states such as MN with STM plans with terms of 6 months or shorter, do not bridge people to open enrollment in the Fall creating a gap and risk some people are not wanting to take at this time.
It is important to understand the options for your clients and to offer Short Term Medical to the clients best suited for this option. LeClair Group offers STM plans with UnitedHealth One, IHC or in some states National General and we would be happy to discuss the best options for your clients.
Reach out to LaRae Mills for more information or to get contracted to offer STM plans to your clients.