Preferred Health Insurance Solutions Provides An Important Regulatory Update for Individuals Who Purchased a Short Term Health Insurance Policy in Illinois

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Consumers who purchased a Short Term Medical Insurance Plan (STM) in Illinois, that began January 1st,will lose coverage unless action is taken.

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Illinois Short-Term, Limited-Duration Health Insurance Coverage Act prohibits Illinois carriers from renewing or rewriting a six-month term STM policy, without a 60 day lapse in coverage.

Many Illinois insureds who purchased a 6-month STM plan January 1, 2019, will see their policies expire at the end of June and need to look for a new insurance company to provide coverage for the next six months, due to the Illinois Short-Term, Limited-Duration Health Insurance Coverage Act(215 ILCS 190, Public Act 100-1180).

STM plans are not ACA Compliant. However, due to the high cost and high deductibles associated with Affordable Care Act (ACA) compliant plans, along with the elimination of the federal tax penalty in 2019 for not having an ACA compliant plan, many healthy Illinoisans opted for a more affordable plan. While most Short Term Medical(STM) insurance plans do not cover pre-existing conditions and many such plans do not cover all of the 10 essential health benefits required under the ACA, such as wellness, mental illness, or maternity, STM insurance remains a much more affordable choice for individuals and families who are in relatively good health.

STM plans are an ideal health insurance solution for healthy individuals or families who may be:
a.    Waiting for group coverage to begin;
b.    Between jobs or laid off, including those who cannot afford the high cost of a COBRA plan;
c.    Waiting for the next ACA Open Enrollment Period;
d.    Young adults no longer covered under their parents’ plan;
e.    Healthy individuals looking for an alternative to the costly ACA compliant marketplace plan;
f.    Illinois policy holders who have had a 2019 STM policy for six months with their current insurance company and are looking to avoid a 60 day lapse in coverage.

Illinois Short-Term, Limited-Duration Health Insurance Coverage Act prohibits Illinois carriers from renewing or rewriting a six-month term STM policy, without a 60 day lapse in coverage. However, Preferred Health Insurance Solutions (PHIS) is available to work with individuals and their families to find replacement coverage, with a different carrier, without consumers having to wait the 60 days to reapply with their current insurance company. A lot could happen in those 60 days, and you want to make sure you have protection in the event of an unforeseen illness or accident.

PHIS will help consumers shop the market for the best health insurance plan options available to help meet your individual health and financial situation, so you avoid going 60 days without coverage. There are no fees for these services. PHIS urges consumers to talk with a licensed independent insurance agent to secure the best replacement coverage available. PHIS knows how critical it is that consumers have a full understanding of plan costs, possible network restrictions, exclusions, coverage options, and available deductibles. Although STM plans may not be a good fit for an individual with chronic health issues, it may be just the right plan for healthy individuals looking to save on the high cost of an ACA compliant plan. As a result of the new STM rules, a STM health insurance plan is an affordable way consumers can secure comprehensive health insurance.

Preferred Health Insurance Solutions:
Headquartered in Bedford Park, Illinois, Preferred Health Insurance Solutions (PHIS) is a national health insurance firm that specializes in assisting individuals and families with their health insurance needs. Their dedicated Call Center consists of a team of multi-lingual, licensed and CMS certified health insurance professionals, who are trained to walk a client through the entire process of selecting and placing them with a health plan that bests meets their individual health needs, as well as responding to any questions they may have regarding their new health insurance policy. Contracted with National and Regional carriers across the country, PHIS has many health insurance plans to choose from. For more information and assistance in shopping for a plan, call 800-342-0631, or visit

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