Tuesday, March 28, 2017

Short Term Medical Plans: With a Twist?

We've written before about Short Term Medical (STM) plans as potentially viable ObamaPlan alternatives. They're a lot less expensive than O'Care plans, and offer lower out-of-pocket maximum's, to boot.

On the flip side, they're underwritten (which means that one must be relatively healthy to qualify), they don't cover pre-existing conditions, and (perhaps worst of all) they're not ACA-compliant, That last means that they don't satisfy the fine penalty tax.

Still, a lot of folks do the math and determine that it's worth taking the (negligible) risk.

The other day, though, I got an interesting email offering what purported to be an "ACA Penalty Free & Guarantee Issue" Short Term Medical plan.


I reached out to co-blogger Patrick for his reaction, and he replied:

"Looks like an oxymoron. I don't see how it is possible unless it is somehow tied to a Christian ministry product. Like most "new products" I've seen, these are likely too good to be true."

As usual, Patrick nailed it. When I responded to the email with a request for additional information, the representative very promptly sent me details, and followed up with a phone call confirming that this is, in fact, a sharing ministry-based plan.

I have no particular objections to these, but they do limit the marketability and, of course, they're not really "insurance." Still, they may offer a reasonably-priced ObamaPlan alternative that's acceptable to people in the market for such (which, we now know, is a growing demographic).

Something to consider.
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