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This Could Be Your Plan

This Could Be Your Plan

Posted Apr 21, 2017 by Jenifer Dorsey

What to Do When You Need Long-Term Coverage That Isn’t Obamacare

You need health insurance, and you need it soon. But there’s a bit of a problem: Open enrollment for 2017 Obamacare plans ended January 31, and you do not qualify for a special enrollment period to purchase one now.

Oftentimes, people in your situation want health insurance that they consider cheap, can be quickly and easily obtained, and will help pay for unexpected medical expenses.


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Short term health plans are a common option for those in between job-based plans and other minimum essential coverage (e.g., major medical, aka Obamacare).

Short term medical insurance, which is sometimes called STM, can be an attractive temporary option for the following reasons:

  • It can be quickly obtained online
  • Coverage may begin as early as the next day
  • Policies last 30 to 90 days – you may be able to reapply for another policy, depending on your state’s laws
  • Plans include benefits for unexpected medical expenses such as emergency room treatment, surgical services, hospital room and board, and more
  • Premiums tend to be lower than those of major medical insurance


How much is STM? Get a quick quote!

No contact information needed unless you apply.


Benefits longer than 90 days

If you need coverage that lasts longer than three months—and, again, an Obamacare plan isn’t an option—consider a hospital indemnity plan (i.e., HIP, fixed indemnity benefit plan).

Hospital indemnity plans:

  • Include benefits that can be applied to covered healthcare services resulting from hospitalization, surgery, chemotherapy and radiation services*
  • Last all year
  • Are guaranteed to be renewable
  • Include lump-sum cash critical illness benefits
  • Can be kept after you enroll in major medical insurance (i.e., an Obamacare plan)**


See an example


HIP can be a smart option if you:

  • Need long-term benefits
  • Don’t typically require a lot of healthcare


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Call the number at the top of your screen to learn more.


Which is better, short term or hospital indemnity?

Whether you should choose short term coverage or a hospital indemnity plan depends entirely on your healthcare needs and budget. This chart can help you quickly compare the two; however, speak with a licensed health insurance producer by calling the number at the top of your screen or click here to find a local agent.



Neither short term plans nor hospital indemnity plans qualify as minimum essential coverage under the Affordable Care Act, which means you could still owe a tax penalty unless you are exempt from the individual shared responsibility provision (i.e., mandate). When in doubt, speak with a health insurance producer about your coverage options and potential exemptions.




* These benefits apply to a specific duration and the amount remains the same regardless of the actual costs of services.

** Hospital indemnity plans do not coordinate with other coverage

These products are not qualifying health coverage (“Minimum Essential Coverage”) that satisfies the health coverage requirement of the Affordable Care Act. If you don't have Minimum Essential Coverage, you may owe an additional payment with your taxes. The termination or loss of this policy does not entitle you to a special enrollment period to purchase a health benefit plan that qualifies as minimum essential coverage outside of an open enrollment period. These products may include a pre-existing condition exclusion provision.

This document is for general informational purposes only. While we have attempted to provide current and accurate information, this information is provided "as is" and we makes no representations or warranties regarding its accuracy or completeness. The information provided should not be construed as legal or tax advice or as a recommendation of any kind. External users should seek professional advice from their own attorneys and tax and benefit plan advisers with respect to their individual circumstances and needs.

About The IHC Group
Independence Holding Company (NYSE: IHC) is a holding company that is principally engaged in underwriting, administering and/or distributing group and individual specialty benefit products, including disability, supplemental health, pet, and group life insurance through its subsidiaries since 1980. The IHC Group owns three insurance companies (Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company), and IHC Specialty Benefits, Inc., a technology-driven insurance sales and marketing company that creates value for insurance producers, carriers and consumers (both individuals and small businesses) through a suite of proprietary tools and products (including ACA plans and small group medical stop-loss). All products are placed with highly rated carriers.

About IHC Specialty Benefits
IHC Specialty Benefits, Inc. (IHC SB) is a technology-driven, full-service marketing and distribution company that focuses on small employer and individual consumer products through general agents, telebrokerage, advisor centers, and private-label arrangements. IHC SB conducts business under the following brands: Healthedeals.com; Health eDeals Advisors; Aspira A Mas; and PetPlace.com. For more information about IHC SB visit http://www.ihcgroup.com/companies.