The Affordable Care Act requires that most Americans pay a fee for each month they go without health coverage. To avoid the penalty, you must maintain minimum essential coverage throughout the year or get an exemption. Many people think that any type of health insurance will keep them from paying this costly fine, but most health plans sold outside of Open Enrollment do not count as minimum essential coverage, including short-term health insurance.
What is short-term health insurance?
Short-term health insurance provides a temporary solution to fill gaps in your health coverage. If you miss Open Enrollment, a short-term plan will fill the gap until the next Open Enrollment Period begins, so your financial security is not jeopardized if you get sick or injured.
Does short-term coverage meet ACA requirements?
Short-term health insurance is ideal for people looking to bridge an insurance gap; however, a short term medical policy does not meet ACA requirements. Consequently, some medical services may be excluded from this coverage. Additionally, short-term health plans typically do not limit the amount you can pay out-of-pocket for medical services in a year, but they may limit the maximum amount the insurer will pay for your medical services in a year.
Can I avoid the tax penalty with a short-term plan?
Having short-term coverage does not exclude you from facing the fine for going uninsured. Because a short-term plan does not qualify as creditable coverage under the rules of the Affordable Care Act, enrollees will face a penalty for not having health insurance coverage.
How do I enroll in a major medical plan?
If you are still uninsured or have a short-term plan, speak with one of GoHealth’s licensed insurance agents today to find the best major medical plan for you before time runs out. Call (888) 322-7557 to speak directly with an advisor, or start shopping online.