• Short Term Health Insurance Blog

  • Sunday, September 24, 2017

  • Temporary Insurance Reforms in Health Care Reform?

    Filed Under: Blogging


The health insurance industry is likely to face some massive upheaval in view of the health care reforms initiated recently. The reforms also include a legislation that will create a plan for short term health insurance with certain caps on how much a person can pay out of pocket. This part of the reform is targeted mainly at early retirees who are not yet eligible for Medicare benefits.

While this could mean good news for early retirees, it also means that rates for short term health insurance, along with those of most health insurance costs, are also likely to see an upward trend. How much this will impact the person who has just lost his/her job remains to be seen.

But what exactly does the proposed temporary insurance legislation provide? It aims to create a “high-risk” pool that comprises those who have a pre-existing condition, and have been uninsured for six continuous months. The government plans to provide this high-risk group with plans that feature subsidized premiums.

The legislation caps the premium at four times the premium that a younger person pays. This program is expected to be in place within three months of the act becoming law. However, remember that if a person does not have a pre-existing condition, there will be no subsidized coverage until 2014.

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