by Dave Kutcher
If you and your family have found themselves in need of a short-term health insurance solution and if that need is continuing beyond the next couple of months, you need to be aware of some new rules enacted by the Biden Administration this year.
Several states around the country have their own rules regarding short-term health insurance plans, but many follow the federal rules, as is the case in Alaska.
In the later part of 2018, under the Trump administration, the rules were relaxed for short-term plans and the duration of coverage availability, allowing for an initial coverage period of up to 364 days and further coverage options for up to another 36 months through renewal/extensions. This leeway has allowed many in need of coverage to provide a stop gap between times when they may otherwise have access to better coverage, such as through an employer sponsored plan.
The new rules under the Biden administration now limit any plans sold with an effective date of September 1, 2024 and later to limit the duration of the coverage to a maximum of 4 months, including any renewal/extension.
If you find yourself in need of continued coverage as an alternative to a short-term plan due to duration limitations, the open enrollment period of November 1- January 15th for American Care Act compliant plans is something you should be paying attention to now. There are some life events that may qualify you to enroll in another plan outside of the open enrollment period, but those events are limited, and you don’t want to wait until it is too late to find out you don’t qualify.
You can purchase coverage in an ACA compliant major medical plan on a month to month basis, so you can utilize one of the available plans to cover short term needs.
Coverage under short term plans is limited in comparison to ADA Compliant major medical plans and now with the new restrictions in terms of duration, they are even less desirable in many circumstances. However, there are times when they fit as a viable option; you are nearing age 65 and soon will be eligible for Medicare, you are awaiting a probationary period for benefit eligibility at a new job, or you simply cannot afford other options and you are not eligible for premium subsidies in the ACA compliant plan exchange.
As far as we are aware there is only one insurer currently offering short-term plans in Alaska. It is also our understanding that as of September 1, 2024 that company will be temporarily halting sales as they consider the new regulations from the federal government.
We encourage you to seek out more information now, before the open enrollment period of November for ACA compliant plans begins so that you have a handle on what your options are in the near term. You can visit the Insurance department for the state of Alaska or visit organizations such as healthinsurance.org for more detailed information and access to helpful resources.
My name is David A. Kutcher, a retired Marine Corp Captain. My business partner in the lower 48 is Richard C. Scott, CLU, LUTCF. For nearly 40 years we have been helping folks with their personal retirement decisions. We encourage you to make an appointment and get ahead of your concerns as early as is possible. You can catch us on the radio every Saturday morning, “Retirement in the Last Frontier”, 8:30-9:30 on AM 650, Keni Radio and on Tuesday mornings, KFQD News Talk Radio AM 750 and FM 103.7. Frontier Retirement, 10928 Eagle River Road; Eagle River, AK 99577, (907) 795-7452.
