Short Term Health Insurance In Hawaii

Hawaii residents can purchase short term health insurance plans for periods up to 90 days per federal law. If you’re between jobs, waiting for your group coverage to kick in or you’ve recently graduated from college, short term health coverage allows you to have healthcare during short lapses in insurance. These plans do not have to cover pre-existing conditions, which may include any diagnosis or treatment in the previous three to five years depending on the insurance company. If you are changing jobs and have a pre-existing medical condition, you may be able to extend coverage with COBRA rather than purchase a short term health policy.

In 2017, President Donald Trump signed an executive order that directed agencies that regulate insurance to allow short term plans to cover longer periods. And in February 2018, the Department of Health and Human Services proposed a new rule that would effectively lift the three-month restriction set by the Obama administration. Although the federal government has relaxed regulations regarding short term health plans, this type of health insurance plan does not meet the requirements for having health coverage as outlined under the Affordable Care Act (ACA) in order to avoid a tax penalty. That penalty will be zeroed out starting in 2019.

In Hawaii, purchasing a short term health insurance policy makes you ineligible for guaranteed-issue plans referred to as HIPAA. HIPAA plans are usually much more expensive than short term health policies but are designed for those with pre-existing conditions. If you want to remain eligible for HIPAA plans, you should not purchase a short term health insurance policy.

In May 2018, House Bill 1520 passed the Hawaiian House and Senate. The bill was forwarded to Governor David Ige, although he has not signed it into law. If signed, insurers would not be allowed to renew or sell a policy to anyone who was eligible to purchase major medical insurance from the marketplace during the open enrollment or special enrollment period. Because almost everyone in Hawaii is eligible to purchase coverage in the exchange, the passage of this legislation would prevent almost every Hawaiian from purchasing short term coverage.

In Hawaii, short term health insurance is often limited to indemnity health insurance that covers catastrophic illnesses or injuries. Most do not cover doctor’s visits, prescriptions or preventive care. In addition, they may have higher deductibles than traditional insurance. The tradeoff is that monthly premiums can run as low as $25.

Carriers Offering Short Term Policies in Hawaii

National General

The IHC Group

Sources

https://legiscan.com/HI/bill/HB1520/2018

https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=HB&billnumber=1520