Obama's ACA attacks Short Term Medical

November 8, 2016


The Obama administration has flexed its muscle once again in regards to healthcare in this country, placing limitations on private medical insurance programs with hopes to thwart competition and to enliven the slumping momentum of Affordable Care Act (ACA) program enrollment.

Short-term medical insurance plans have become very popular in the ACA era, not necessarily as a cheaper alternative to ACA-compliant products, but as a solution to the blatant coverage gaps in Obamacare. Short-term plans were designed with the intent of providing healthcare to those who are awaiting exchange eligibility and open enrollment periods.

But the U.S. government has made moves to tighten its grip on the health insurance industry by placing further limitations on short-term medical plans. On October 28, 2016, the U.S. Department of the Treasury, Department of Labor and Department of Health and Human Services announced that short-term medical plans will be limited to 90 day terms of insurance.

While that news sounds harsh, as Petersen International’s Short Term Medical Plan currently boasts an 11 month term of insurance (the longest in the country), the reality is that the new regulations don’t go into effect until January 1, 2017. So now is the time to have your clients lock-in the longest terms of insurance possible.

Despite this new short-term medical regulation, the overall outlook remains bright for the short-term medical business. The new rules allow insured persons to purchase subsequent 90 day terms of insurance.

But I stress to you and your clients that these are the waning days of the long-term availability of short-term health insurance. Get your clients in now before the new regulations take effect at the beginning of 2017.

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