What you need to know about the ban on short-term health coverage.
Thinking of securing some short-term health insurance? Think again. The California Legislature has passed a bill banning the sale of short-term health insurance plan. The bill, SB910, was authored by State Sen. Ed Hernandez and was approved by the Senate and Assembly in August 2018. With the signature of Governor Jerry Brown, it will become law.
Short-term life insurance plans are often cheaper than other life insurance policies but do not need to cover all the benefits required under the Affordable Care Act, such as preventative care, essential health benefits and protection for people with pre-existing conditions. It has been estimated that 10,000 people in California were on these short-term plans that now need to face securing a different policy.
If Brown signs the bill, California will join a handful of states that have restricted or banned short-term plans. If the bill is to become law, it would take effect in January 2019. Californians will still be able to buy short-term coverage in special situations, such as if they are in between jobs, through the state insurance exchange Covered California or directly from health insurers like Blue Shield or Kaiser. These plans do comply with Affordable Care Act consumer protections like essential health benefits. Since losing job-based coverage is a qualifying life event, consumers would be able to do this at any time during the year, not just during annual enrollment.
Do you have questions regarding your health insurance? Then don’t hesitate to contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.