Major Medical

Major Medical health insurance is coverage for non-Medicare consumers that covers medical/hospital expenses as well as some prescription drugs. Since the implementation of the Affordable Care Act (ACA), all new qualified comprehensive health plans are required to meet ten minimum essential coverage standards.

Major Medical health insurance is sometimes offered by employers to their employees. If an employee is not offered coverage or does not meet the requirements to obtain coverage through his employer, he is required by law to obtain individual creditable coverage in order to avoid a penalty under the ACA.

Premium Subsidies are available for families earning up to 400% of the federal poverty level (FPL) in the form of tax credits provided under the ACA. Families earning less than 250% of the FPL are also eligible for additional assistance for out-of-pocket health care expenses.

Short Term health insurance was originally designed to bridge any gap in insurance between major life events such as a change in jobs, a divorce, or retirement prior to being Medicare-eligible.

Since the implementation of the Affordable Care Act (ACA), short term health insurance policies have changed drastically. They are NOT considered minimum essential coverage and therefore do not qualify as creditable coverage to avoid the penalty under the ACA. As of April 1, 2017, short term policies can last no longer than 90 days.

Short Term health insurance is available year round and provides coverage for catastrophic events. They exclude benefits for any pre-existing conditions and typically do not cover maternity, mental health, or preventative care.

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