- Uncategorized (86)
- June 22, 2007: Rx Nopays
- May 6, 2007: STM for College Grad
- January 19, 2007: Agent Compensation
- January 18, 2007: Self Insuring
- January 17, 2007: Over Medicated
- January 10, 2007: How Much Do I Need to Say I Weigh?
- January 7, 2007: Underwriting rejection
- December 13, 2006: Pre-existing Conditions
- December 12, 2006: Questions & Opinions
- December 4, 2006: Half a Plan
STM for College Grad
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.
May 13, 2007 at 4:19 pm
The problem with most STM plans is that the are not requires by law to be guarantee renewable in Texas. Most Short Term Medical plans will only allow 12 months of coverage and then the plan is over. If you get sick during this time with a major illness, or have an accident that requires prolong treatment, you are going to run out of coverage.
In Texas individual health insurance is guaranteed renewable and can not be canceled due to sickness so I advise my client to purchase an major medical plan rather than a short term plan because the cost is not that different but the risk for loss is much greater with the STM
May 30, 2007 at 8:00 am
There is no question that a traditional major med plan is superior to an STM plan for the reasons you suggest.
Of course I also indicated that plans such as Tonik are available for about the same price and with much broader coverage.
Thank you for your comments.