Short Term Insurance Plan and Its Limitations

What is a Short-Term Insurance Plan

Short Term Health Insurance is not an  equivalent to major medical insurance coverage offered under the Affordable Care Act or Marketplace Plans. UnitedHealthcare Short Term Health Insurance is a flexible health insurance coverage solution for students and their families looking for alternative options than Health Insurance Marketplace Plan or outside Health Insurance Marketplace Plan’s open enrollment period. 

Short Term Insurance Plan Limitation

• Short Term Health Insurance is not intended to be primary medical insurance, and doesn't have the same benefits as Affordable Care Act (ACA) insurance. Plans vary widely in what they cover. Generally, these plans are less expensive than ACA coverage, but you may be subject to a tax penalty.

• Application includes a series of medical questions to determine if you qualify for coverage.

• Preexisting conditions are typically not covered.

Short Term Insurance Plan Eligibility

All Short-Term Insurance Program applicants must meet the following requirement:

• You must live in the United States at time of application 

• You must live in the United States 12 months prior to this application.

• You must be a U.S. citizen or legal alien in the United States. You cannot be currently incarcerated. 

ACA Tax Form and Short-Term Insurance Plan, Subsidies and Premium Payment

A Short-term plan is not a major medical insurance plan. The insurance company will not issue IRS Forms 1095-A and 1095-B for the insured. Because there is no government subsidies paid toward premium for Short Term Insurance Plans, student must make initial premium payment prior the coverage beginning, and monthly premiums must be paid in order to keep coverage in force.