Allen, how do you propose to cover her for the entire year when you start effective 12/31? I was planning writing an ACA plan on 1/1 and riding the grace period until 1/5 when UHC's STM kicks in. I'll accept crappy coverage but want coverage for the whole year. It looks like there is no grace period for the 1st month's premium.
Final Ruling: 90 Day Limit for STM
- Thread starter Professor Leads
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Allen, how do you propose to cover her for the entire year when you start effective 12/31? I was planning writing an ACA plan on 1/1 and riding the grace period until 1/5 when UHC's STM kicks in. I'll accept crappy coverage but want coverage for the whole year. It looks like there is no grace period for the 1st month's premium.
I think he said the client is 64, so Medicare before 1/1/18.
Why don't you write 2 policies? #1 STM for Jan. Then #2 STM for 2/1 to 12/31. Am I missing something here?
Allen...where are you reading March? I've heard an Exec Order to stop enforcing the penalty, but nothing legislative.
There are 2 seperate issues with STM:
1. The day limit
2. Its not MEC
The day limit after 4/1 can leave people wide open to claims if there's an event/diagnosis during 4(3?) months. You can't renew the STM and you can't get "real" coverage til 1/1.
No MEC means you pay the penalty. If Trump axes the penalty in January, there might be a rush to STM, but I doubt it. I'm pitching it to all my off ex, with very few takers. They'd rather pay the money then take the risk, especially with kids or wives of child bearing age.
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The reason for not writing 2 STM is that if an illness starts during the 1st contract, then the 2nd wouldn't cover it.
Writing full ACA for the 1st month or whatever shorter period works allows the STM to cover the remaining days in 2017.
I have 3 people to cover - me, wife & 15 yr old. I'll split into 2 contracts Me and wife/son. My premium is the highest. Son can't have access unless written as dependent under one of parents. Splitting doesn't lock the entire family into the ACA plan if one of us gets sick.
There is approximately $15,000 premium savings going with STM. I note that the UHC STM contract is no worse in terms of contract language than we used to commonly use. Still, I'm not thrilled with the holes but the $15k is significant.
I still haven't found the legal grace period for paying the 1st ACA premium. Online references 2016 ongoing (not the 1st) payments only. The clerk at the carrier didn't know either. Is there a statutory grace period for the 1st payment?
But if the illness starts in the first month (January) you still have time to recover, because OEP doesn't end until 1/31. (Plus, lets face it. If you have a catastrophic event or diagnosis, somehow you are going be a group within 30 days.)
I only sell in TX, but all of ours want the 1st premium payment by 1/1, no exceptions.
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