Eighty percent of those who opted for short-term insurance say that affordable monthly premiums are more important to them than comprehensive medical benefits. (Photo: Shutterstock)
Why do people opt for short-term insurance over Affordable Care Act plans? Mainly because it costs less and it meets their health care needs, particularly for older workers, according to eHealth's “Short-Term Consumer Survey.”
eHealth polled more than 800 consumers who purchased short-term health insurance products through eHealth, and found that 61 percent did so because of its relative affordability. Drilling down by age, older respondents age 55 to 64 were even more concerned about affordability than younger people age 35 to 44 (70 percent vs. 60 percent).
Affordability also trumps the need for comprehensive medical benefits – as 80 percent of those who opted for short-term insurance say that affordable monthly premiums are more important to them than comprehensive medical benefits. Respondents ages 55 to 64 are least likely to cite comprehensive benefits – such as maternity care – over affordable premiums (12 percent vs. 88 percent, respectively).
“At eHealth we believe comprehensive coverage is always best, but the fact is that many middle-class Americans don't qualify for subsidies and cannot afford comprehensive ACA plans,” says eHealth CEO Scott Flanders. “As demonstrated by our survey results, affordability may be a greater concern for older Americans who face significantly higher monthly premiums than younger adults when buying ACA coverage. Short-term plans may offer many their only alternative to going uninsured.”
Another reason to opt for short-term insurance — the need for temporary coverage, cited as the major factor for 28 percent of the respondents. Temporary coverage is more important for younger people: 33 percent for people ages 18 to 24 and 32 percent for people ages 25 to 34, compared to 23 percent of those between the ages of 55 and 64.
A majority 69 percent of respondents say their short-term health insurance plan provides coverage for the benefits they value most. Older enrollees and men are more likely to say this: 78 percent of respondents age 55 to 64 responded to this question affirmatively, compared to 66 percent of those age 25 to 34 — 75 percent of men agree with this sentiment, compared to 65 percent of women.
Wealthier enrollees are more satisfied with short-term benefits: 77 percent of those with a household income greater than $100,000 say that short-term coverage offers the benefits they valued most, compared to 65 percent of those with a household income of less than $25,000 per year.
About a (23 percent) of short-term enrollees have received medical care while covered by their short-term plan, including visiting the doctor when sick (54 percent); receiving some type of preventive medical care, such as check-ups or tests (43 percent); receiving prescription drugs (25 percent) and visiting the hospital emergency room (12 percent).
Nearly all of the respondents are satisfied with their short-term coverage — 40 percent are very satisfied and 51 percent are somewhat satisfied. Among those who received medical care while covered by their short-term plan, 79 percent found that their plan covered what they expected it would.
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
