Health insurance is always an important topic in our life. Every year, Americans pay a ton in health insurance costs, including insurance. In this article, we will go over the three different types of health insurance plans. They are ACA (Affordable Care Act) health plan, short-term health insurance, and trim-term health insurance plans. ACA Health Insurance Plans are the government health insurance plans, and the other two are private and temporary health insurance plans.
1. Affordable Care Act (ACA)
What is it?
It was signed in 2010 by President Obama, so it also called Obamacare. The enrollment date is from early November to mid December, and the plan starts on January 1st of the following year.
What are the benefits?
- Outpatient care
- Prescription drugs
- Emergency Services
- Mental health and addiction treatment
- Hospitalization
- Preventive care
- Laboratory services
- Maternity and newborn care
What is HSA?
Health savings account (HSA) allows people to put pre-tax dollars into this account and pay for their medical expenses. You will never be taxed by using this money for approved health costs and you can exclude the money you put into the account from your taxable income (tax-exempt). You can only have this type of account and use it with an ACA high-deductible health insurance plan.
What is an ACA subsidy?
It reduces the health insurance premium (price) for low-income and middle-income people who live between 100% and 400% of the federal poverty level.
Pros:
- More affordable for low income citizens and people with major health concerns.
- The plan won’t expire
- You can potentially use an HSA
Cons:
- Higher premium
- Complicated with limited enrollment periods
- Government restrictions on care
2. Short-term health insurance plan
What is it?
It is a type of health insurance plan that will provide temporary medical coverage for people. You can select coverage from 1-364 days. When you want more coverage, you re-apply.
What are the benefits?
- Doctor visits
- Emergency care
- X-Rays
- Surgery
- Some prescription drugs
Who are eligible?
- Unable to apply for ACA
- Waiting for Medicare
- Turning 26 and coming off parents’ insurance
- Waiting for benefits to begin for a new job
- Losing coverage after divorce
- Healthy and under 65
Pros:
- Low cost
- Can start as early as tomorrow if you are qualified
- Help bridge gaps in times of transition
Cons:
- Doesn’t cover pre-existing conditions
- Doesn’t cover all essential health benefits of ACA
- A limited selection of doctors
3. Tri-term Health Insurance Plan
What is it?
It’s a variation of short-term insurance plans but extends coverage to three years minus a day.
What are the benefits?
- Doctor visits
- Emergency care
- Hospitalization
- Surgery
- Prescription drugs
- Preventive care
- Some pre-existing conditions may be covered
Who is eligible?
The primary applicant must be 19 -63 years old.
Pros:
- Apply only one time
- No open enrollment date restrictions
- The effective day can be as early as five days after you applied
Cons:
- Some pre-existing conditions are not payable
- Excludes outpatient prescription drugs
- Doesn’t cover some mental illness
If you want to know more information, please contact We Care Insurance. We are here to help you!
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