Applying for a Short Term Major Medical Plan
This product is not suitable for everyone……………Call before purchasing.
MAJOR UPDATES IN STM REGULATIONS:
Per the new federal tax law, the ACA penalty in 2019 goes to 0%, and due to new federal regulations, STM plans are now available for up to 12 months in many states (Including Florida).
BUT, due to restrictions in AZ law, they will be limited to 6 month plans until changes in state law are made.
Short term health plans have become an alternative for those trying to escape the full costs of an ACA/Obamacare plan, in great health, who are considering going UN-insured, and just need an affordable catastrophic policy.
STM plans are NOT ACA compliant, NOT eligible for ACA tax credits, and do NOT cover pre-existing conditions. They exclude coverage for prescriptions, maternity, mental health, preventative care, and other limits/exclusions. (Read your policy) These plans should only be utilized by consumers who are not eligible for tax credits (due to higher income) and in great health. These plans can be a great bridge for consumers who are: between jobs, awaiting group coverage to be effective, not eligible for ACA special enrollment period, or eligible for Medicare age 65 in the near future.
For tax years 2017 & 2018, many in Arizona are eligible for an exemption from the 2.5% of income penalty under the “Affordability Exemption” which states if the lowest cost bronze plan (LCB) is more than 8.05% of your 2018 income (8.16% in 2017), then you are not subject to the penalty for not having MEC. (Annual LCB premium / .0805 = maxium income allowed to avoid penalty).
Another penalty exemption is now available for those people in a county where only a single carrier is offering ACA coverage. Every county in Arizona for 2017 and 2018 had only 1 carrier available. Remember, the penalty goes to 0% starting in 2019.
NATIONAL GENERAL is the ONLY CARRIER in Arizona offering 2 consecutive policies (back to back), each having 6 month terms, with automatic reissue of the second policy.
This is critical to ensure you are covered most of a calendar year (12 months), as the ACA/”Obamacare” insurance market is closed for most of the year.
Plans include up to $1 million per benefit period, with flexible $2,500 – $10,000 deductibles, and ancillary plans to add on (accident, illness inpatient, cancer, heart attack & stroke).
National General uses the Aetna Open Choice PPO nationwide network.
Plans have a 1 year look back period for pre-existing conditions, do NOT cover pre-existing conditions, maternity, Rx and other items that can be found in the limitations and exclusion section of the policy.
OTHER SHORT TERM MAJOR MEDICAL CARRIERS