Standard Life Vs Other STM or Non MEC Plans

[yorkriver1]

May add them, curious about the plus/minus of non-MEC plans for longer term.

Client likes the low premium of current STM, but can't keep it going past 12/31/16.

 

[somarco]

STM is an E&O claim waiting to happen.

 

[yorkriver1]

Could be what I call the motel theory. Everyone has 5, 6 or so assumptions about what they will be provided in a motel room. They also may make assumptions about how a particular type of insurance will cover them.
Pre ex and no carry over are big ones, also reminder of tax penalty.

 

[somarco]

Never had and E&O claim but I did have an STM blow up on a client.

Facing a nominal rate increase (10% range as I recall) she decided to drop her plan and buy STM without my knowledge or advice. She was going to get married in a few months and would go on her future husband's plan at that time.

In the interim she was in a serious car accident. Hospitalized for several weeks. Follow up care, therapy, etc. Xs of $100k.

For reasons not revealed her wedding was called off. The STM was expiring so she called to get back on her old plan. No can do. Ongoing medical care would result in a denial. The STM (if approved) would not cover any care related to her accident.

This was all her doing (or undoing). Had she called me before dropping the old plan and buying the STM I would have advised against.

She was screwed by her own actions.

This is why I rarely mention STM as an option.

 

[hamben]

The claims and assumptions I am reading on this thread are simply not accurate.
I have sold short term medical for over 20 years when it was appropriate for the client.
I have seen these policies pay claims for $300,000 for cancer $250,000 for a brain aneurism , $200,000 for a heart attack.

STM is a insurance CONTRACT. just like group insurance and individual are contracts.
Carriers pay according to the contract. If the client is healthy and truthful and short term medical is appropriate there will not be an E and O claim.

Before 2014, I used it primarily for my clients that turned 64 who were healthy and had no pre existing. The coverage was more than enough to get them to Medicare eligibility. The cost was a third the price for a comparable individual plan that was also going to terminate On the insureds 65 Birthday.
Since 2014 I have recommended it to more clients who are health, have no pre existing and do not qualify for tax credits. Why? Because they are
1/2 to1/3 the price of ACA compliant plans and get the insured to the next open enrollment. To say it's not qualified and people will owe the tax penalty also is not always correct. Of the 100 or so I have sold less than 10 clients will have a penalty owed because 90 of them will qualify for the 8.05% affordability exemption. The ones who will owe the penalty have chosen to go with the short term and pay the penalty because it was still several thousand dollars cheaper for them to pay the penalty then to purchase compliant plans.
As far as making money I average $2,000 in commission for every one I do . Is it all from the STM sale? No it is not, the average is about $500 from the STM sale but these clients need guidance and usually need other products to protect themselves.
The one I did yesterday is leading to a $12,000 life insurance commission.
STM has its place in the market and is a alternative for healthy individuals that do not receive tax credits.

 

[somarco]

You are repeating yourself without adding to your "argument". If you have nothing new to offer, move along.

 

[hamben]

I disagree. The inaccuracy of your comments needed to be rebuffed in two sepeare posts. I would suggest that you stop spread Inacutare information to agents looking for guidance.

 

[yankee466]

Never had and E&O claim but I did have an STM blow up on a client.

Facing a nominal rate increase (10% range as I recall) she decided to drop her plan and buy STM without my knowledge or advice. She was going to get married in a few months and would go on her future husband's plan at that time.

In the interim she was in a serious car accident. Hospitalized for several weeks. Follow up care, therapy, etc. Xs of $100k.

For reasons not revealed her wedding was called off. The STM was expiring so she called to get back on her old plan. No can do. Ongoing medical care would result in a denial. The STM (if approved) would not cover any care related to her accident.

This was all her doing (or undoing). Had she called me before dropping the old plan and buying the STM I would have advised against.

She was screwed by her own actions.

This is why I rarely mention STM as an option.

This time of year, I will use STM plans as better than nothing when someone has missed the open enrollment for whatever reason....cost or ignorance. If they need coverage for the rest of the year, I will offer them a STM plan that goes longer than 6 months to avoid the potential issue that Bob pointed out. If there are no pre-ex issues......it seems to give the clients the peace of mind that they seek.....and it is generally a very affordable option, even with an ACA penalty thrown in at times.

 

[tonyisme]

Would STM pay out on a kidney stone surgery or brain cancer after 2 months on a new policy?
Which carriers ? I had an HCC STM
That did not pay out my kidney stone claim two months into a new policy

 

[kgmom219]

Would STM pay out on a kidney stone surgery or brain cancer after 2 months on a new policy?
Which carriers ? I had an HCC STM
That did not pay out my kidney stone claim two months into a new policy

I would fight it.....

But I've never seen the fine print for an HCC policy, either