Short Term Plans...Up-to 364 Days of Covg

[TxOnline]

IHC is advertising their STM's with up-to 364 days of coverage:

http://www.thinkihc.com/products/brochures/SecureSTM_Web_0912.pdf

$2 million max benefit (with this product)

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I've seen (in the past) that SOME states offered up-to 364 days, but NOT all (states).

This may have changed over the past year.
(State laws may have been relaxed...in anticipation of 2014.)

For instance:
BCBS-Tx has been offering up-to 11 months STM covg for about 1 yr now.

Prior to that, I don't think that Texas STM's could exceed 185 days.

Check YOUR state (for specifics).

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Here's the July "rule" that I've been looking for:

https://s3.amazonaws.com/public-inspection.federalregister.gov/2013-16271.pdf

See Triggering Events for an SEP on page 601.
(Total pages of the document = 606)
(So, just go to the bottom & count up if you don't see page numbers.)

Losing an STM policy does NOT appear to trigger an SEP!!!!!!!

But, if an STM policy is set to expire on 1/1/2015, policyholder could shop the Marketplace during end-of-2014 Open Enrollment (for an effective date of 1/1/2015).

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I'll bet we'll see more-and-more of these STM's available with up-to 364 days of coverage.

 

[Ann H]

Here's the July "rule" that I've been looking for:

https://s3.amazonaws.com/public-inspection.federalregister.gov/2013-16271.pdf

See Triggering Events for an SEP on page 601.
(Total pages of the document = 606)
(So, just go to the bottom & count up if you don't see page numbers.)

Losing an STM policy does NOT appear to trigger an SEP!!!!!!!

But, if an STM policy is set to expire on 1/1/2015, policyholder could shop the Marketplace during end-of-2014 Open Enrollment (for an effective date of 1/1/2015).

TxOnline, I just posted the following to another thread that was "hijacked" to talk about short-term plans.

Regarding the Short-Term policies, this is my understanding. The only short-term plans that can be sold in 2014 are the ones that are HIPAA excepted. So, if you buy a HIPAA excepted plan in 2014 and then lose that coverage, it doesn't trigger an SEP.

Summary:

HIPAA excepted (not creditable coverage)
* can be sold in 2013 and 2014
* if purchased in 2014, no SEP when it ends
* if purchased in 2013, I don't know if there will be an SEP when you lose it, because it was a HIPAA excepted plan

NOT HIPAA excepted (counts as creditable coverage)
* can be sold in 2013
* cannot be sold in 2014 unless it is fully ACA compliant
* if you purchased it in 2013 and the coverage ends in 2014 an SEP is triggered

Like I said, that is my understanding, but this is not an area that I have researched well.

 

[TxOnline]

GREAT summary, Ann!!!

You're the BEST!!!

We'll keep watching & get this figured out!

 

[TonyC]

Nice work Anne....thanks