Myths and misconceptions about healthcare coverage – specifically short-term medical (STM) plans – are common.
But with the cost of healthcare continuing to increase, the need for your clients to have a thorough understanding of their options so they can help to protect their health and finances is more pressing than ever.
Let’s take a look at 3 common myths about STM plans so you can help your clients make informed decisions:
Myth #1: STM plans are only accepted by a limited number of doctors.
STM plans are widely accepted by providers and facilities across the nation. If a client chooses to see an out-of-network provider, the services may still be covered (depending on the plan), but she/he will pay upfront for and submit her/his own claim to be reimbursed.
These plans often feature provider networks that ensure lower rates than providers who are outside of the network, but that doesn’t preclude your clients from choosing providers of their choice.
Just like with traditional major medical plans, clients with STM coverage who choose to receive medical services outside of the featured network may incur higher out-of-pocket costs. Many STMs even offer your clients the ability to see any provider they wish.
Myth #2: STM plans can help those enrolled avoid the Affordable Care Act’s tax penalty.
While STM coverage can be an affordable and quality option for your clients who are looking to help bridge the gap in their health coverage, it does not qualify as minimum essential coverage under the Affordable Care Act. That means that they are likely to face tax penalties. Your clients who are without minimum essential coverage for less than 3 months within a year and those who belong to certain groups such as non-citizens are exempt from the penalty.
This year, the penalty for the uninsured and underinsured will be the greater of $695 or 2.5% of adjusted annual income.
Myth #3: STM coverage is expensive and doesn’t provide quality coverage.
STM premiums are often lower than major medical premiums. The coverage provided by short-term plans typically includes a wide range of valuable insurance benefits for individuals and families such as:
- Preventive care and routine doctor visits
- Emergency care
- Inpatient and outpatient surgery and hospital care
Your clients can enjoy added non-insurance benefits as well such as:
- Mobile access to board-certified doctors who can treat many common illnesses
- Patient advocacy service that can help navigate the world of healthcare and negotiate medical bills
- Prescription savings membership that can lower out-of-pocket costs by up to 75% on medicines for you, your family, and even your pet
- Digital fitness tool to help track your wellness journey
However, the coverage provided by short-term plans does not include:
- Immediate benefits for hospital stays, surgery or anesthesia for conditions you already have
- Benefits for prescription drugs
Learn about adding STM plans in your portfolio today by:
- Calling 1.877.376.5831 and selecting option 3
- Emailing firstname.lastname@example.org