Short Term Medical insurance is also health insurance that is widely used for people that are in need of insurance for short periods of time usually 1 to 12 months. Short term medical insurance doesn't meet the minimum requirements, nor the 10 essential health benefits, therefore it would not satisfy the requirement needed to avoid the shared responsibility tax payment unless you were uninsured for less than 3 months. The benefits of short term medical are you can enroll anytime throughout the year, they're fairly inexpensive, if you're in between jobs and only need insurance for a short time, or a recent college grad and not on your parents insurance and looking for a job, or not concerned about the tax penalty then short term medical maybe a good fit. I must say that in some cases a Special Enrollment Period maybe available to purchase via the Health Insurance Marketplace that way you can avoid the penalty. Another type of short term medical would be travel insurance. These plans are for people travelling outside of their home country
Health insurance today has made significant changes since the introduction of the 2010 Patient Protection and Affordable Care Act, commonly referred to as "ACA", or "Obamacare". The most significant change is insurance must meet a minimum set of requirements, and offer 10 essential health benefits to be considered creditable coverage. If an individual, or family doesn't have creditable coverage then they maybe subject to paying a shared responsibility tax payment unless the current plan their on is grandfathered, or they've been exempt from the insurance requirement. For an employer with 100 or more employee's insurance must be provided otherwise they will be subject to an excise tax for each employee who purchases through an exchange and receive subsidies.
Small businesses with 50 or fewer full-time equivalent employee's can purchase health insurance on or off an exchange, on the exchange it's called the Small Business Health Options (SHOP) marketplace. A tax credit is available for those small businesses that qualify, to receive the tax credit for up to two years the company must purchase through SHOP. As with the individual marketplace, insurance companies plans offered must meet the minimum set of requirements, and offer the 10 essential health benefits to be considered creditable. A small business employer that offers health insurance and qualifies for a tax credit the company must meet the participation rules of 25 or fewer full time equivalent employee's, average wage's paid of $50,000 per FTE or less, contribute at least 50% of the premiums. To check whether you qualifyclick here to be redirected to the Small Business Health Insurance Premium Tax Calculator.
To purchase creditable health insurance there's different options that can be taken, purchase on or off an exchange, an employer who offers it, government sponsored insurance, a union, or group. To purchase on an exchange there's state-based exchanges, or the federally facilitated exchange referred to as the Health Insurance Marketplace. The health insurance companies offering insurance through an exchange competes for your business. The categories of plans to choose are the same among companies, and have the same actuarial value among each category and that is, bronze (60/40), silver (70/30), gold (80/20), and platinum (90/10), in addition catastrophic plans are available for people under 30, have a hardship exemption, or fall below the federal poverty level (FPL), and usually pays after a very high deductible is met. Depending on your particular needs an on exchange plan maybe the best option, reason being based on your income you may qualify for subsidies and cost sharing reductions, and to receive this benefit you must purchase an on exchange health plan. To check to see if you may qualify for a subsidy click here, you can also check the on exchange carriers available and enroll. The Health Insurance Marketplace or state exchange will provide any final eligibility determinations in regards to subsidies. For off exchange health insurance we can check with the carriers we represent to see what's available in your area, for employer sponsored health insurance check with the companies benefit administrator, and the same goes for unions, and groups.
Our agency offers on and off exchange health insurance, as well as limited medical plans, small business health insurance, short term and travel insurance. To get more information about plans, rates, and the companies available in your area please contact us.
Limited Medical Plans or "Gap" insurance like the Value Med Plan, is a hospital indemnity plan that pay's you a flat fee for services like hospitalization, doctor's visits, or outpatient care, and performed by a licensed doctor, practitioner, or hospital. These types of plans works well with high deductible health plans (HDHPs), they will pay you directly, has simplified underwriting , and usually works with any other insurance.
Kevin Oliver Insurance Agency, LLC