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ACA Health Insurance vs Short Term Health Insurance (Part 1)



Person deciding between ACA plan or short term plan.


In the health insurance market, there are Affordable Care Act health insurance options, and there are Short Term health insurance options.  If you are searching for a quality health insurance plan, you may have come across an issue that you may find perplexing.  As both ACA and short term health plan options are considered health insurance plans, what are the differences between the two options? What are the advantages and disadvantages of each option, when they are compared? These are the type of questions that you will need to have answers to if you want to find a quality health insurance plan the fits your needs and budget.  Having a good understanding of the differences of these two types of health insurance plans could save you in monthly premium cost.  Not having a good understanding of these issues could end up being a costly mistake.

Good to know:  Tell the Truth on your application: Did you know that in some circumstances, health plan companies are not legally obligated to honor your policy and pay claims if you knowingly misrepresented the truth on your application?  Getting your application accepted, or getting a cheaper premium, is not worth the risk of the company canceling your policy because you misrepresented the truth.

ACA Health Insurance



ACA health insurance plans (Affordable Care Act health insurance plans), first came into existence when the first part of the comprehensive health care reform law was enacted on March 23, 2010.  (The law was amended by the Health Care and Education Reconciliation Act on March 30, 2010.  Full implementation occurred on January 1, 2014, when the individual and employer responsibility provisions took effect, state health insurance Exchanges began to operate, the Medicaid expansions took effect, and the individual and small-employer group subsidies began to flow.)  The law provided numerous rights and protections that make health coverage comparatively fair and easy to understand.  The Law also allows for subsidies (through "premium tax credits" and "cost-sharing reductions") to make monthly ACA premiums more affordable.  The law also expands the Medicaid program to cover more people with low incomes.

Good to know:  Be up front about finances.  Are you short on cash?  Do you have a high insurance deductible?  Don't be embarrassed to tell your doctor or dentist.  He may be able to suggest less costly treatment options or even agree to lower fees.  "Try to negotiate the fee you pay before or at the time you make your appointment and/or offer to pay cash," suggests Ruth Linden of Tree of Life Health Advocates.  "Some physicians will agree to accept a reduced rate, if you inform them you are experiencing difficult financial circumstances." In fact, a Wall Street Journal/Harris Interactive poll found that three out of five people who negotiated with their doctors received discounts.
courtesy of Parents.com
The Affordable Care Act contains certain rights and protections that are mandated by law.  These rights and protections minimize the coverage exclusions that plagued most previous health insurance plan options.  Affordable Care Act health insurance plans are the most comprehensive health insurance coverage you can purchase today.  Rights and protections of ACA laws apply to all ACA health insurance plans.  Consequently, the policy benefits of each Affordable Care Act plan are largely the same.  Generally, ACA plans are differentiated by the deductible amount, the office copay, and percentage of shared costs that the policy holder is responsible for, for medical services.  This makes ACA health insurance plan benefits easier for the average consumer to understand.

If you qualify for an ACA health insurance plan, there are no pre-existing medical exclusions to prevent you from purchasing the plan.  If you qualify financially, you could receive a subsidy that would reduce the monthly premium of your plan.  In Addition, there is no lifetime maximum benefit limiting any Affordable Care Act plan.

Coming soon: ACA Health Insurance vs Short Term Health Insurance (Part 2)



Other articles:  Is Short-Term Health Insurance Right For You?
Finding Short-Term Health Insurance.
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