Illinois lawmakers have taken steps to limit the maximum duration of short-term medical plans (STM plans) from 360 days to 180 days. Earlier this year, Gov. Bruce Rauner vetoed a bill that would apply this limitation, but Illinois lawmakers had enough votes to override that veto. Bill SB1737 is due to go into effect on 1/1/2019. The bill states that STM plans can only be for a duration of 180 days. When a STM plan ends there is a mandatory 60 day break before starting another STM plan.
United Healthcare and other carriers are stating that any plan that has been signed up before 1/1/19 will be honored for the duration of the contract. The STM contracts in force prior to the implementation of the 180 day duration of the term rule, will be honored for the duration of the term that was written in the members original STM contract. This may vary by carrier.
Short term plans are not suitable for everyone. Preexisting conditions are not covered and medical conditions may prevent someone from being approved. Someone who is taking many medications needs to be aware that the pharmacy benefits are limited with STM plans. Checkups, maternity benefits, and mental health help are not covered. Below is a chart illustrating the difference between STM and permanent plans. STM plans often cost much less than permanent plans. If eligible government subsidies can help dramatically lower the premium on permanent plans.
Open Enrollment ends December 15, 2019. This has no effect on STM plans. Unless you have a qualifying event you will not be able to purchase a permanent plan until Open Enrolment starts for 2020 plans.
Edie Goldstein is an independent insurance professional whose roots are in the futures trading industry. She understands the unique needs of the trading and brokerage space and has worked with individuals and firms to find the right insurance plans and policies that best fits the circumstances. Please feel free to contact the author, Edie Goldstein at 312-649-9143 or edie312@gmail.com with any questions or concerns.
