Should You Keep a Non-Compliant Policy?

Short Term Medical Insurance


Short term health insurance for temporary gaps in coverage.



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Please note, our Short Term Medical insurance is intended for temporary gaps in health insurance.  It is not compliant with the federal Affordable Care Act and does not cover expenses related to pre-existing conditions.

You don’t have to make any immediate changes if you’re happy with your existing health plan that doesn’t comply with the Affordable Care Act (ACA). In March 2014, the Obama administration granted Americans a two-year extension in switching to a policy that complies with the ACA -- meaning that some of us could have non-compliant health coverage well into 2017.

So you can buy a new non-compliant plan if you don’t think you need coverage that meets the ACA’s Minimum Essential Coverage requirements. However, there are several reasons why you might want to think about getting ACA-compliant coverage.

Reasons why you might not want a non-compliant policy

  • Tax penalty: When the non-compliance extension expires, non-compliant plans will be subject to an increasing tax penalty.
  • Underwriting: Medical underwriting is often required for an insurance company to decide whether to offer you coverage. This process reviews your medical history and your current health status to identify any potential risks and determine whether your insurance policy should be accepted.
  • Limited underwriting required: Short Term Medical insurance from HCC Life Insurance Company involves limited medical underwriting for you to be accepted for coverage. You get immediate online confirmation and fulfillment, including your medical identification cards.

Transitioning to an ACA-compliant policy

If you decide that you want to buy a Marketplace policy, you’ll face a gap in coverage of 15 to 45 days before your Marketplace plan takes effect.

Short-Term Medical (STM) insurance is designed to cover Americans through temporary situations like a wait for Marketplace coverage to start. You choose the length of coverage, coinsurance and deductible so you’re prepared in the case of a medical emergency.

STM doesn’t comply with the ACA requirements. However, it works great to get you through an ACA waiting period. Coverage can be as short as a month and you can tailor the length of coverage to your situation.

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