Frequently asked questions about short-term health insurance in South Carolina
Yes. As of 2020, there were at least six insurers offering short-term health insurance in South Carolina.
At least six medical insurance companies offer short-term medical coverage in South Carolina:
- BlueChoice (prior to 2019, BlueChoice offered a short-term plan via a partnership with Companion Life, but it was not a Blues-branded product until 2019).
- BlueCross BlueShield of South Carolina
- Everest Reinsurance
- Independence American Insurance Company
- National General
- United Healthcare (Golden Rule)
Some of the available plans can be issued for 11 months and renewed for a total duration of 33 months (the maximum allowed in South Carolina), while others have shorter maximum terms based on the insurer’s rules.
Short-term health insurance in South Carolina can be purchased by residents who can meet the underwriting guidelines of insurers.
In general, people can qualify for short-term health plans if they’re under 65 years old (some insurers will only issue plans to people who are under 64 years of age) and in fairly good health, but the specific requirements vary from one insurance company to another. In general, the applicant will have to answer a short list of questions about their medical history in order to apply for coverage, but short-term health insurance companies also tend to use post-claims underwriting.
Short-term health insurance plans usually include blanket exclusions for pre-existing conditions, so these types of plans are not adequate for someone in the Palmetto State who needs medical care for ongoing or pre-existing conditions.
Short-term health plans also generally exclude coverage for some of the ACA’s essential health benefits (most commonly, maternity care, prescription drugs, and mental health care), and impose dollar limits on the coverage they do provide. It’s important to double-check all of the plan information before purchasing a short-term policy, to make sure that you understand the limitations of the plan.
Before purchasing a short-term health insurance plan, you should check to see if you’re eligible for a special enrollment period that would allow you to enroll in an ACA-compliant (ie, Obamacare) individual major medical plan through the South Carolina exchange (marketplace). There are a variety of qualifying life events that will trigger a special enrollment period, and premium subsidies are available depending on your household income.
You can enroll in a marketplace plan even if you’re only going to need it for a short time. These insurance plans are purchased on a month-to-month basis, so you can cancel your coverage after just a few months if you become eligible for health coverage elsewhere (from a new employer, for example, or Medicare).
Depending on the circumstances, there could be times when a short-term health plan might be the only realistic option, for example:
- If you missed open enrollment for ACA-compliant coverage and do not have a qualifying event that would trigger a special enrollment period.
- If you’ve recently become employed and the health plan your employer offers has a waiting period before benefits take effect (assuming you don’t also have a qualifying event that would allow you to enroll in an Obamacare plan while you wait for your employer’s plan to take effect).
- You’ll soon be eligible for Medicare and need just-in-case coverage until you reach age 65 and your Medicare coverage takes effect (note that Medigap insurers can impose a pre-existing condition waiting period if you don’t have coverage for your pre-existing conditions prior to enrolling in Medicare).
- If you’re not eligible for Medicaid or a premium subsidy in the marketplace (exchange), the monthly premiums for an ACA-compliant plan might be unaffordable.
People who are ineligible for premium subsidies include those ensnared by the ACA’s family glitch.
The South Carolina Department of Insurance published Bulletin 2018-08 in August 2018, to clarify the state’s rules for short-term health insurance in South Carolina.
In an effort to differentiate short-term health coverage from ACA-compliant health plans, South Carolina limits the initial term of a short-term plan to no more than 11 months, and total duration, including renewals, to no more than 33 months.
Although the South Carolina Department of Insurance lists short-term medical coverage as an option for people who lose their employer-sponsored coverage, they do clarify that it “does not provide the same protections as major medical coverage.” The Department of Insurance also notes that short-term healthcare plans “are designed to have lower monthly premiums [than ACA-compliant plans or employer-sponsored plans]. As a result, they have less coverage and consumer protections than major medical plans.”