Your health insurance experts for NC & SC

Big changes coming to Short-term Medical (STM) Coverage!
Could STM be a great cost-saving solution for you?


There are times in life when you just need coverage to fill a temporary gap. Short-term medical coverage - also called temporary health insurance - is a great option to consider in certain situations, such as:
  • Between now (or the end of current coverage) and the effective date of an Affordable Care Act ("Obamacare") policy
  • If an ACA ("Obamacare") policy feels just plain unaffordable or doesn't make sense for your situation
  • During the months leading up to Medicare eligibility or 
  • While waiting for group health benefits to become effective as a new employee
Short-term medical (STM), or temporary, coverage may be the perfect option. At the current time, stm plans can be used for up to 90 days before a re-write is required. (Although that rule is currently under review at the federal level and we do have work-arounds.) 

The advantage of STMs are that these types of health plans can become effective very quickly, usually as soon as midnight at the end of the day of application. STMs are significantly less expensive than ACA plans for those ineligible for a subsidy, and qualifying is simple and straightforward - as few as 3 - 5 health questions on the application.


If the applicant can answer 'no' to the health questions and meet citizenship or residency requirement (if there are any), coverage is automatic.

You should be aware that short term health coverage... 

  • Does have health questions (which may prevent some from being eligible for it) 
  • Does not cover pre-existing conditions. 
  • Does not include maternity coverage
  • Generally does not cover routine preventive care and screenings. 

Also, because the plans do not meet all the requirements of the Affordable Care Act, those insured under STM plans may be subject to the tax penalty in 2018. (In 2019, there will be no tax penalties for non-qualified coverage.) However, there is a policy add-on for less than $70/month that offers protection against the penalty. 

Short Term Medical coverage can be a less expensive alternative and, for the right situations, well worth considering.

Feel free to contact us and let's talk about whether short-term coverage is a good option for you!

704-464-8040 or email us via our Contact Us page


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