STM for College Grad

May 6, 2007 by bob.

Q. My son is graduating from college and I need a plan to bridge him over to an employer group plan. Where can I find a site (or sites) that compare plans, provide financial ratings and an independent analysis of plans available.

A. An STM may be the best thing or the worst possible choice. More on that later.

As for websites, there really are none that provide the kind of information you mention. Most of STM plans are the same and prices are similar. One plan that has proved competitive is administered by HPA, a large administrator out of Florida. The STM plans have simplified underwriting (usually 5 health questions or less) and can be approved in minutes for coverage to begin the next day.

STM plans also have limitations such as a 5 year look back on pre-ex conditions. Also, the plans are not renewable. Once benefits expire, even if you are in claim, you cannot renew.

STM plans do serve a purpose, but what happens if your son is injured or becomes ill and is unable to begin his job as planned? Will he go on the payroll and benefits or not? Chances are, the employer will be willing to hold his position for a short while but salary and benefits do not begin until he actually reports to work. For about the same price as the STM your son can have a more comprehensive plan such as Tonik without the worry of pre-ex conditions or expiry of coverage while he is in claim.

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