We are thrilled to be able to inform brokers that we recently combined our individual and senior divisions into a single Consumer Products Division in order to better serve our client base. Along with the restructuring comes a brand-new short-term medical product. We invite brokers to contact us to learn more about this product.
Short-term medical gives brokers yet another tool for introducing our products and services to employers. Thanks to changes in the law, a short-term plan is ideal for certain kinds of employees not yet covered under their employer’s standard health insurance plan.
While we cannot publish specifics of our plan here, we can offer a basic introduction to what short-term medical is, how it works, and who most benefits from it. We encourage you to learn more about it if you are one of our brokers. And if you are not yet a broker representing BenefitMall, maybe it is time for you to get on board with us.
Basics of Short-Term Medical
Short-term medical, also referred to as short term or temporary health insurance, is a form of medical coverage that gives certain groups of people the opportunity to have coverage in the absence of a standard employee-sponsored medical plan. The length of coverage is determined by a variety of factors.
For example, term lengths vary by state. Some states limit short-term medical jet just a few months while others allow up to 12 consecutive months of coverage. You would have to look into the regulations in those states where you do business in to figure out how long coverage can be in place.
As for what short-term medical covers, it is designed to cover emergencies and major expenses. It is not intended to be a substitute for a standard medical policy covering primary care and other routine services. Think of it as major medical if that helps.
How Short-Term Medical Works
Short-term medical is identical to standard health coverage in terms of its mechanics. Both employers and employees can contribute to cover premiums, and services are provided by participating clinicians and healthcare facilities. Whether or not the employee has to worry about using network providers depends on the individual plan.
Who Benefits from Short-Term Medical?
Now for the most important part of this discussion: who benefits from short-term medical. This is where you have the chance to shine as a broker. Short-term medical is intended to help workers who are:
- Between Jobs – While COBRA allows continuous coverage for limited amount of time when a covered employee leaves his or her job, short-term medical provides coverage in between jobs separate from COBRA.
- Waiting for New Coverage to Kick In – Employees new to a particular job may have to wait for a specific time until they are eligible for their company's health insurance plan. While they wait, short-term medical picks up the slack.
- Waiting for Medicare Eligibility – Some people do not have medical insurance in place as they approach Medicare age. Short-term medical picks up the slack here as well.
- Waiting on Open Enrollment – Given that open enrollment only occurs once per year, some new workers may find themselves without any health insurance prior to the next open enrollment period. A short-term medical plan addresses that particular problem.
Short-term medical is yet another great benefit to pitch to your customers. Now that you can offer it through BenefitMall, there really is no reason not to. As always, we are here to support our brokers at every turn. Do not hesitate to contact us if you have questions about our new short-term medical product.