The current administration has approved the extension of short term plans from the current allowed 3 months to a full 12 months. This was the norm on a federal level for years prior to the the previous administration changing the length of time allowable under the short term model from 12 months to 3 months in an attempt to increase participation in the Federal exchange program. These plans do have some limitations and exclusions to watch for such as excluding pre-existing conditions and waiting periods on services such as surgery. However, this move may bring a breathe of fresh air to states like Oklahoma who suffer from some of the highest cost Individual Market Health Insurance rates in the nation.
The 12 month option will be available Jan 1st 2019 and most companies will begin accepting applications for these plans on the 1st of October. States themselves have the ultimate say in the matter and can set their own limitations on these plans. For example, you may be able to buy a short term plan in Maine for only three months from the same company you can buy a 12 month plan in Texas. Companies also have some of their own bells and whistles on these plans such as renewals that are allowed for up to 36 months under the current ruling. But again, each individual state will have the ultimate say in what they allow sold in their states. Stay tuned for continued development on this recent ruling and reach out to us for a free quote when the 12 month medical plans become available!