Agility would like to provide clarity on the upcoming regulatory changes to UnitedHealthcare’s Short-term Medical (STM) and TriTerm Medical (TTM) plans, following the short-term, limited duration Final Rule released this past spring. As September 1, 2024, approaches, it is crucial for clients and brokers to understand the impact on these plans and take necessary actions to ensure continued coverage.
Current Availability and Action Steps
- Plan Availability Before September 1, 2024:
- STM Plans: UnitedHealthcare currently offers STM plans with up to 12 months of coverage in many states.
- TTM Plans: UnitedHealthcare’s TTM plans provide nearly 3 years of coverage.
Action: Plans sold and issued by August 31, 2024, will maintain their current term lengths, despite the upcoming regulatory changes.
- eStore Enhancements:
- June 21, 2024: Adjustments will be made to the quote effective date window on UnitedHealthcare’s eStore.
- July 19, 2024: UnitedHealthcare will allow TTM plans to request nextday effective dates.
- August 3, 2024: The quote effective date window will extend to December 31, 2024, for UnitedHealthcare plans.
- Important Consideration for Future Effective Dates:
- Preexisting Conditions: Changes in a client’s health between application and the effective date could result in conditions being considered preexisting by UnitedHealthcare.
Recommendation: Agility advises clients to notify UnitedHealthcare of any health changes to avoid complications with coverage. If health changes occur, considering an ACA plan may be prudent.
Key Dates and Changes
- August 30, 2024:
- Deadline for Applications: This is the last day to submit applications for UnitedHealthcare’s STM and TTM plans with their current term lengths.
Note: UnitedHealthcare will make every effort to underwrite all applications, but processing all requests before the new rule takes effect is not guaranteed.
- August 31, 2024:
- eStore Closure: UnitedHealthcare will not accept new applications for STM and TTM plans as they prepare to implement new term length requirements.
Preparation for Implementation: The eStore will be temporarily unavailable for new quotes and applications as UnitedHealthcare transitions to the new rules.
- September 1, 2024:
- New STM Plan Duration: UnitedHealthcare will offer STM plans with a maximum duration of 4 months (3 months plus a 1month extension).
- TTM Plans Discontinued: UnitedHealthcare will no longer offer TTM plans.
Planning for Future Coverage
- Review Options: Agility encourages clients to review all available options to determine the best fit for their health insurance needs.
- Secure Coverage: If a short-term plan from UnitedHealthcare is deemed suitable, clients should secure a plan with the maximum allowable term length before the new regulations take effect.
This overview highlights key dates and actions for ensuring clients’ coverage during the transition to the new rules for UnitedHealthcare’s plans. Please reach out if you need more detailed information or have any concerns.
Agility Insurance Services is committed to assisting clients and brokers in navigating these changes to UnitedHealthcare’s short-term plans. It is important to stay informed and plan accordingly to ensure that clients’ health insurance needs are effectively met.
For any questions or additional support, please contact Agility Insurance Services for further assistance at (866) 590-9771.
