Don't Go without Insurance! Short Term Medical Strategy...

January 23, 2016

So here is an idea. While I do not recommend going without insurance and paying a tax penalty, if you decide not to enroll in an ACA (Affordable Care Act) plan with all the bells and whistles and pricey premiums during Open Enrollment or your when you lose employer group coverage, you should think about purchasing a Short Term Medical plan and have a million dollars of coverage for anything new that might happen to you. This plan will not cover any pre-existing conditions, and it will not cover wellness; therefore it is not ACA compliant, and you will pay a penalty for having it. However, if you get hit by a bus, or get cancer, you have something, it will pay the bills. That's why I call the STM (Short term Medical) plans "get-hit-by-a-bus" insurance. You can check prices for a Unitedhealthcare plan on my website:

STM Insurance

NOTE: Not everyone qualifies for a STM policy; if you say YES to any of the handful of medical questions, you will be declined.

Remember, if you don't buy during open enrollment or your special enrollment period and get sick later, you won't be able to sign up for an ACA plan. In the first few years of this law, most insurance companies did not ask for Proof of a qualifying event; however, with all the reporting this year (starting in 2016, insurance companies are reporting to the gov't who has plans and for how long, and they know who does not a plan – big brother is watching! So this 'loop hole' to say you had a qualifying event, and buy a policy outside of the open enrollment will probably not work.)