STM for 2014
- Thread starter abcsales
- Start date
- 8,448
ABC Sales,
Short Term Medical plans will be going strong in 2014. As you say, they are exempt from Affordable Care Act mandates and rules.
An STM client CAN NOT leave the policy and enroll in an Exchange plan whenever he/she wishes to do so. They must wait until the annual open-enrollment period.
The best thing to do is to write an STM that is 1 year in duration during the month of December. If this STM client develops an illness and needs long-term medical attention, he/she can enroll in an Exchange policy when the STM expires, which, thanks to your guidance, will coincide with the annual Exchange open enrollment.
A lot of agents will pursue this strategy with relatively healthy people who do not qualify for an Exchange subsidy.
-Allen
Short Term Medical plans will be going strong in 2014. As you say, they are exempt from Affordable Care Act mandates and rules.
An STM client CAN NOT leave the policy and enroll in an Exchange plan whenever he/she wishes to do so. They must wait until the annual open-enrollment period.
The best thing to do is to write an STM that is 1 year in duration during the month of December. If this STM client develops an illness and needs long-term medical attention, he/she can enroll in an Exchange policy when the STM expires, which, thanks to your guidance, will coincide with the annual Exchange open enrollment.
A lot of agents will pursue this strategy with relatively healthy people who do not qualify for an Exchange subsidy.
-Allen
- Thread starter
- #3
- 8,448
YEP...the insured can re-enroll in the STM plan at end of each expiration period. You can write a month-to-month one today and then write a 1 year STM in December. You've then synchronized the client's STM expiration with the annual ObamaCare open enrollment window. Your clients will say, "ABCSales, you're a wonderful agent. Thank-you!"
In most cases, they won't mind paying the 1% (2014) or 2%(2015) Penalty-Tax to the IRS..which is what they'll have to do if they don't have a Qualified Health Plan. An STM is NOT a QHP.
STM will not be made illegal by Washington, because people using the strategy described above will only get an Exchange Plan when they're sick. This will cause health insurers to crash and burn faster, which is the ultimate goal of the Affordable Care Act.
- Thread starter
- #5
- 8,448
August 1, 2014
Our telemarketers are generating a lot of health insurance leads from people who are severly overweight. They make too much for expanded Medicaid, but didn't (or won't) purchase ObamaCare.
We're selling non-obese people STM to tide them over to the next ObamaCare effective date, but the STM company we're using from IHC will not insure men over 300lbs or women over 250lbs.
Is there a decent STM out there that doesn't ask the weight question and allows applicants to pay monthly? We have one like that but the insured must pay all months up-front.
Thanks in advance for any helpful replies.
-Allen
Our telemarketers are generating a lot of health insurance leads from people who are severly overweight. They make too much for expanded Medicaid, but didn't (or won't) purchase ObamaCare.
We're selling non-obese people STM to tide them over to the next ObamaCare effective date, but the STM company we're using from IHC will not insure men over 300lbs or women over 250lbs.
Is there a decent STM out there that doesn't ask the weight question and allows applicants to pay monthly? We have one like that but the insured must pay all months up-front.
Thanks in advance for any helpful replies.
-Allen
Allan who are you using for stm I'm using BCBS but they make people pay upfront with no cc
There are a few companies that allow you to extinguish a short term medical plan and that creates a SEP. BCBS of Nebraska is one. Florida BCBS is another. its right on both applications as a sep. However agents are not smart enough to figure out how to take advantage of this knowledge even when you walk them though it.
- 8,448
Hi Sam,
For people who need to make monthly payments (vs a lump sum), I've gravitated over recent years to writing the IHC STM exclusively. It pays claims, which is one thing I'm most keen on. (see: www.MyIHCGroup.com)
A new article out today regarding STM plans. Their suitability and lack of suitability.
Link: Short-Term Health Plans Might Offer Some Relief But They Have Significant Gaps - Kaiser Health News
ac
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