A type of limited health coverage with features largely banned by the Affordable Care Act is flourishing, as some consumers grab onto an alternative they say is cheaper than conventional plans sold under the law. Sales of short-term health insurance are up sharply since the health law’s major provisions took effect in 2014, according to insurance agencies. New sales figures show the temporary policies, traditionally sold to consumers who are trying to fill coverage gaps for a few months, have continued their surge recently—even...
US consumers are able to have cheap health insurance outlawed by the Affordable Care Act [ACA] by buying short-term policies that fall outside of the regulations. Sales of short-term policies, traditionally sold to consumers trying to fill coverage gaps, have soared since the ACA came into force. Despite attracting financial penalties for falling short of the ACA’s standards, the policies are still significantly cheaper than plans that comply with the new rules, which prohibits exclusions of pre-existing conditions, prescription drugs and other clauses. A survey by eHealth a few months found that 51% of purchasers of short-term policies cite price as the motivating factor versus 39% who said they needed to buy temporary cover.