Short Term Health Insurance In Nevada

According to the law in Nevada, the maximum length of a short term health insurance plan is 185 days. This rule went into effect in 1997. However, that legislation doesn’t bear much weight currently. Instead, federal rules define the term limit for temporary health plans. Since 2017, these insurance plans have been restricted to 90 days throughout the country. Nevada residents must adhere to this federal limit.

The Trump administration is hoping to change that policy. Soon, 364 days may be the new federal limit for short term health plans. This change wouldn’t provide license for Nevada residents to sign up for year-long temporary insurance plans, though. State law would take precedence, likely returning plan limits to six months.

The Urban Institute’s Health Policy Center estimates that a federal change could possibly prompt about 13,000 Nevada residents to drop their current ACA-compliant coverage. This represents about 13.2 percent of the population that subscribes to major medical plans that meet the ACA’s standards.

Nevada insurance law specifies that you should be limited to 185 days of consecutive coverage within a 365-day period. At the end of one policy term, if you want to subscribe to another short term health insurance plan, you may have to get it from a different insurance company.

Furthermore, temporary insurance policies are non-renewable. No matter how long your term length is, you have to fully re-apply in order to begin a new policy term. This requires that you fill out a new application and answer any required questions about your medical history all over again. Insurance companies can reject you based on any new medical problems. The state also allows short term insurers to deny any claims related to pre-existing conditions.

Since short term insurance isn’t guided by the rules of the ACA, you probably won’t receive coverage that’s as comprehensive as what you’d get from a traditional major medical plan. In 2018, the Kaiser Family Foundation looked at short term health plans available to Las Vegas residents. Only half of them had any provision for mental health services. Even fewer – just 39 percent – covered substance abuse treatment. About 33 percent of plans included a prescription drug benefit. Not one offered maternity care.

The Nevada Division of Insurance reminds consumers to exercise caution when purchasing a temporary health insurance plan. Opting for one of these plans instead of traditional coverage could leave you subject to the individual mandate penalty for the remainder of 2018. Additionally, you can’t receive an Obamacare tax subsidy to help pay for a limited-duration policy.

State insurance officials recommend relying on these plans to cover a gap in health insurance. For example, you might choose to use this type of insurance when you’re waiting for coverage through a new job to begin. Because you can get these policies at any time of the year, they may be a good option when you’re waiting for Obamacare open enrollment to start in November.

Carriers Offering Short Term Policies in Your State

Everest Prime
LifeShield National Insurance Company
UnitedHealthcare (Golden Rule Insurance Company)
Standard Life Accident and Insurance Company
National General Accident and Health
Companion Life Insurance Company (Pivot Health)
The IHC Group (Independence Holding Company)

Sources:

http://doi.nv.gov/Consumers/Health_and_Accident_Insurance/Short_Term_health_insurance/
https://www.leg.state.nv.us/NAC/NAC-689A.html#NAC689ASec434
https://thenevadaindependent.com/article/exchange-official-deeply-concerned-about-impact-of-short-term-health-insurance-plans-on-premiums