• Short Term Health Insurance Blog

  • Monday, November 20, 2017

  • Maximizing Benefits Through an STM Plan

    Filed Under: Blogging


A short term medical plan (or an STM plan) is short term health insurance that gives you benefits and extras that can make the insurance actually save you money equivalent to what you might have paid for it, simply through discounts and other add-on benefits. This is done by allowing you to access the wide network of PPOs that will give you discounts on treatment and prescription drugs.

There are two national Preferred Provider Networks (PPNs)—the ACS and the Multiplan—that you can get access to once you buy an STM plan. The network providers provide their services at negotiated fees and the discounts are passed on to the customer.

The discount that is provided through the network means less money out of your pocket. Your final bill will reflect the discount and you don’t owe the network providers the difference in their retail rates and the negotiated fees.

The coinsurance that you will pay is based on the negotiated fees and you will still have to pay the deductible and your contribution. Taking the help of a network provider is completely voluntary. However, if you cannot find a network provider in your area, arrangements can be made to negotiate a fee with the health provider you use.

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