Market Overview

Pivot Health Releases Infographic on Short Term Health Insurance as Trump Administration Reverses Obama-Era Coverage Duration Limit

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Illustration focuses on life situations when short term health plans
can fill coverage gaps for 50 percent less than Obamacare plans

Pivot Health, a leading short term health insurance and alternative
health plan marketer recently released a new infographic, 10 Life
Situations When Short Term Health Plans Are Needed
. The
instructional illustration outlines when short
term health plans
can be a temporary solution for individuals and
families needing immediate insurance coverage but do not qualify for or
cannot afford Obamacare (ACA) plans.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180801005576/en/

"Each year more Americans are being priced out of the health insurance
market, and short term plans can be an affordable solution to fill gaps
in coverage. Today's Trump administration announcement on the extension
of coverage duration periods for short term health insurance is a win
for the American consumer. This infographic helps consumers better
understand what short
term medical insurance
is, and where it might be a good fit for
their particular situation," said Jeff Smedsrud, Chief Executive Officer
of Pivot Health.

The Trump administration's ruling comes at a time when the uninsured
rate in the U.S. is ticking back upward. A new
government report
found that nearly 1 million people dropped their
major medical coverage in 2017, many which were most likely priced out
of the market as rates rose 21 percent on average nationally. The
greatest departure from the federal and state marketplace exchanges came
from those who received no government assistance and were responsible
for shouldering the full cost of health insurance on their own.

"It's no wonder people chose to go uninsured when rates are
skyrocketing. The rapid rise of entrepreneurs, hourly employees and
contract workers is driving a thriving ‘gig' economy but they have to
purchase their own health insurance. New company employees typically
have a 90-day waiting period before insurance coverage begins, or have
an extremely expensive COBRA option when they leave a job. There is a
disconnect in the market. That's when short term health plans, which are
structured like major medical health plans, can provide coverage and
save consumers about 50 percent or more when compared to ACA plans,"
said Smedsrud.

In the infographic, Pivot Health recommends 10
life situations when short term health insurance might be a good fit

for:

  1. Self-employed entrepreneurs who make too much to qualify for an ACA
    subsidy
  2. Those stuck in an employer waiting period
  3. Early retirees
  4. Individuals moving to a new state
  5. College students
  6. Consumers with a limited doctor network
  7. Individuals who cannot afford COBRA coverage
  8. Consumers going through a divorce
  9. Younger adults turning age 26 and aging off parents health plan
  10. Those too rich for Medicaid, too poor for government subsidies

The Trump administration's new rules for short term health plans extend
the 90-day coverage duration limit to 364 days, reversing an Obama-era
rule that was put into place in 2017. Insurers would be allowed to
extend policies up to a maximum of 36 months.

Today a tax penalty is imposed on consumers who do not carry
ACA-eligible plans for a minimum of nine months, which includes short
term health plans. However, in December 2017 the Trump administration
eliminated the tax penalty, allowing consumers to purchase a short term
health plans without risking a fine for the 2019 tax year.

Smedsrud summarized, "This ruling puts more power of choice back in the
hands of consumers. The short term health insurance market has
incredible potential as we wait to see how midterm elections and
Congress approach health care reform in the future. Until then, short
term health plans can be a literal life-saver for individuals and
families on a budget."

Read
a Q&A with Smedsrud for more information about the short term health
plan ruling
.

Download
the Pivot Health short term health insurance infographic
.

About Pivot Health
Launched in 2016, Pivot Health is an
insurance product development, management and marketing company led by
an experienced team of health insurance professionals that have managed
over $7 billion of insurance premium. The company has proprietary
products and dedicated relationships with several national carriers. The
founders of Pivot Health have led previous firms that were acquired by
NYSE listed companies. Pivot Health was acquired in the spring of 2018
by HealthCare.com (www.healthcare.com),
a privately-owned search-and-compare health insurance shopping platform.
For more information, visit www.pivothealth.com.

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