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Pivot Health Releases Infographic on Short Term Health Insurance as Trump Administration Reverses Obama-Era Coverage Duration Limit

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Last updated November 5th, 2019

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Illustration focuses on life situations when short term health plans can fill coverage gaps for 50 percent less than Obamacare plans

SCOTTSDALE, Ariz.–(BUSINESS WIRE)–Pivot Health, a leading short term health insurance and alternative health plan marketer recently released a new infographic, 10 Life Situations When Short Term Health Plans Are Needed. The instructional illustration outlines when short term health plans can be a temporary solution for individuals and families needing immediate insurance coverage but do not qualify for or cannot afford Obamacare (ACA) plans.

“Each year more Americans are being priced out of the health insurance market, and short term plans can be an affordable solution to fill gaps in coverage. Today’s Trump administration announcement on the extension of coverage duration periods for short term health insurance is a win for the American consumer. This infographic helps consumers better understand what short term medical insurance is, and where it might be a good fit for their particular situation,” said Jeff Smedsrud, Chief Executive Officer of Pivot Health.

The Trump administration’s ruling comes at a time when the uninsured rate in the U.S. is ticking back upward. A new government report found that nearly 1 million people dropped their major medical coverage in 2017, many which were most likely priced out of the market as rates rose 21 percent on average nationally. The greatest departure from the federal and state marketplace exchanges came from those who received no government assistance and were responsible for shouldering the full cost of health insurance on their own.

“It’s no wonder people chose to go uninsured when rates are skyrocketing. The rapid rise of entrepreneurs, hourly employees and contract workers is driving a thriving ‘gig’ economy but they have to purchase their own health insurance. New company employees typically have a 90-day waiting period before insurance coverage begins, or have an extremely expensive COBRA option when they leave a job. There is a disconnect in the market. That’s when short term health plans, which are structured like major medical health plans, can provide coverage and save consumers about 50 percent or more when compared to ACA plans,” said Smedsrud.

In the infographic, Pivot Health recommends 10 life situations when short term health insurance might be a good fit for:

1. Self-employed entrepreneurs who make too much to qualify for an ACA subsidy

2. Those stuck in an employer waiting period

3. Early retirees

4. Individuals moving to a new state

5. College students

6. Consumers with a limited doctor network

7. Individuals who cannot afford COBRA coverage

8. Consumers going through a divorce

9. Younger adults turning age 26 and aging off parents health plan

10. Those too rich for Medicaid, too poor for government subsidies

The Trump administration’s new rules for short term health plans extend the 90-day coverage duration limit to 364 days, reversing an Obama-era rule that was put into place in 2017. Insurers would be allowed to extend policies up to a maximum of 36 months.

Today a tax penalty is imposed on consumers who do not carry ACA-eligible plans for a minimum of nine months, which includes short term health plans. However, in December 2017 the Trump administration eliminated the tax penalty, allowing consumers to purchase a short term health plans without risking a fine for the 2019 tax year.

Smedsrud summarized, “This ruling puts more power of choice back in the hands of consumers. The short term health insurance market has incredible potential as we wait to see how midterm elections and Congress approach health care reform in the future. Until then, short term health plans can be a literal life-saver for individuals and families on a budget.”

Read a Q&A with Smedsrud for more information about the short term health plan ruling.

Download the Pivot Health short term health insurance infographic.

About Pivot Health
Launched in 2016, Pivot Health is an insurance product development, management and marketing company led by an experienced team of health insurance professionals that have managed over $7 billion of insurance premium. The company has proprietary products and dedicated relationships with several national carriers. The founders of Pivot Health have led previous firms that were acquired by NYSE listed companies. Pivot Health was acquired in the spring of 2018 by HealthCare.com, a privately-owned search-and-compare health insurance shopping platform. For more information, visit www.pivothealth.com.

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