Non-Qualified Health

Insurance Plans

When you think of health insurance, what comes to mind?

It’s most likely a form of qualified health insurance provided by the Affordable Care Act (ACA). This type of insurance coverage comes in many forms, whether it’s private insurance or social programs like Medicare and Medicaid.

Although the ACA assisted in insuring nearly 20 million people, there are still millions who’ve chosen to remain uninsured because the full cost of ACA health insurance is too expensive for individuals and families. Luckily, there are several affordable alternatives to consider that might help save you money and give you health coverage.

These plans are called Non-Qualified, or Non-ACA plans since they do not meet ACA’s standards, but still offer plenty of coverage at lower prices. Here’s what you need to know:

What Is Non-Qualified Health Insurance?

ACA compliant (or “qualified”) plans cover the required ten essential health benefits, which include services for preventive care, maternity, mental health and, substance abuse assistance.

Non-Qualified health insurance plans are not ACA compliant. These health insurance plans don’t follow the ACA health insurance guidelines, but still offer an appropriate amount of coverage.

Many Americans might also choose the Non-Qualified health insurance options instead of an ACA plan because of less expensive coverage options, making Non-Qualified plans ideal for those who are generally healthy and don’t see a doctor on a regular basis.

Non-Qualified health insurance is a less expensive alternative to Obamacare with fewer coverage options. Plans such as:

  • Temporary health insurance
    Temporary health insurance
  • Indemnity plans
    Indemnity plans
  • Workers’ compensation
    Workers’ compensation
  • Medical discount plans
    Medical discount plans
  • Supplemental accidental coverage
    Supplemental accidental coverage
Unqualified health insurance

That said, nearly 27.5 million Americans are uninsured in the United States, with coverage costs playing a major role as to why. Going uninsured proves to be a risk to millions of Americans, which is why it’s best to find a coverage plan that works for you and your income — even if it’s an Non-Qualified health insurance plan.

As a general rule, there are three overarching types of non-qualified plans to choose from. We’ll briefly cover each and give you the basic info you need to make a good decision for your budget:

TYPE 1:

Short-Term Health Insurance

Short-term health insurance is a plan with a limited duration that ranges between 30 and 364 days and is guaranteed renewable for up to 3 years depending on the state . Short-term health insurance is intended to help people who need temporary medical insurance while they search for long-term health insurance plans. Many people now purchase Short-term health insurance as affordable alternative to the full cost of an ACA plan.

Since they may still need coverage for unexpected medical situations like hospitalization, intensive care, or surgery, short-term plans can fill the void.

Short-Term Health Insurance
Short-term health insurance might be useful for you if:
  • You are in between jobs and need protection in the meantime
  • You are recently ineligible for your parents’ insurance and need insurance until you make long-term plans
  • You are waiting for coverage from your spouse to begin but need to be covered until then
  • You need an affordable alternative to an ACA plan to serve as bridge to Open Enrollment

These plans are less expensive than ACA insurance, but they don’t meet the Affordable Care Act (ACA) / "Obamacare" requirements or cover medical attention for pre-existing conditions.

TYPE 2:

Indemnity Insurance Plans

An indemnity insurance plan is an Non-Qualified healthcare plan that helps pay a fixed sum for unexpected healthcare costs and emergencies. You are also free to choose from any network of providers and physicians, allowing the most freedom of any qualified or nonqualified plan. Indemnity insurance do not expire as opposed to short-term health insurance plans.

Short-Term Health Insurance
Indemnity insurance might be right for you if:
  • You want the freedom to choose any healthcare provider without committing to one primary physician
  • You want to pay less for your monthly premium, and don’t mind potentially higher out-of-pocket costs
  • You live in a region where certain doctors and medical services are not accessible under a qualified plan that takes health maintenance organization (HMO) or preferred provider organization (PPO) services

There is also a program called hospital indemnity plans (HIP), which is a type of fixed coverage where you’re guaranteed a fixed benefit no matter the cost of services from hospitalization, surgery, or chemotherapy.

TYPE 3:

Other Non ACA Compliant Plans

There are several different types of plans that are considered insurance or ways to help save money on high medical costs, like workers’ comp, discount health programs, and supplemental accident insurance.

Workers’ Compensation
Workers’ Compensation

Workers’ compensation is an insurance plan that is required by all employers to provide wage replacement and medical benefits in the event of an injury at work. This is offered in exchange for the worker’s promise not to sue the company for negligence. Although all employers offer this, the specific levels of coverage vary.

Medical Discount Plans
Medical Discount Plans

Also known as discount health programs, medical discount plans are not considered a form of health insurance. These discount plans are intended to help save users money on products and services that typical insurances (both Non-Qualified and qualified) may not cover, like dental, vision, hearing, and chiropractic services. To receive these benefits, look into your insurance policy and see if you can save with any available medical discount plans.

Supplemental Accident Insurance
Supplemental Accident Insurance

Even with insurance, you’re likely to face out-of-pocket costs in the event of a major accident. Programs like supplemental accident insurance are designed to help you handle and cover out-of-pocket expenses that pile up after an accidental injury.

Payments from this type of insurance are made to the beneficiary, so you can use the lump sum however you wish, whether it’s for emergency treatment, prescribed medication, or any other medically-related expenses. This is independently-purchased insurance, which means you own the policy so that coverage begins immediately and will follow you no matter your employer.

Is Non-Qualified Health Insurance Right for You?

Although ACA compliant health insurance plans are intended to help Americans gain more coverage, many people are abandoning Obamacare to consider cheaper options, like Non-Qualified plans. Non ACA compliant health insurance plans are generally less expensive and ideal for those who may not qualify for Obamacare.

If you need an affordable alternative to Obamacare, then it might be time to consider your alternative options. Non-Qualified plans are perfect for healthy people who want more freedom without overpaying each month. Find out which plans you qualify for today.

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