Reference to Enrolling a Client Out Side Oep and Sep Thread I Posted Earlier As Promised.

[sorellana]

Ok so after calling around pretending to be a consumer i found out some minor details but still there is a way around the tax penalty.

here is the break down:

yes:
short term plans are medically underwritten
preexisting conditions apply

however:
The federal tax penalty only applies to individuals that go 90 days in the year with out health insurance.

so with that being said we are kind of both right:
you can avoid the penalty only if

you are uninsured or on a short term plan for no more than 60 days don't go pass the 90 or even use up to the 90th day. the minute you do you are subjected to the tax penalty.

as far as after the the short term medical plan is up, by then there is a possibility of having a life changing event which have a wide wide range of what qualifies as such.
even though the short term plans do not have all of the essential benefits it still gives the consumer some sort of coverage should they need it verses being uninsured for the 60 days.

my information on both threads comes from a market place supervisor as well as a few short term carriers.

so in conclusion

you have 89 days to go with out coverage before the tax penalty applies to you. for those 89 days if you chose short term insurance qualify and are able to get it at least you have some coverage. if you have to or chose to go uninsured you have about 60day for a life changing event to occur qualifying you for an sep before you reach day 90 and the tax penalty applies to you.

 

[CHUMPS FROM OXFORD]

"you have about 60day for a life changing event to occur"

You don't wait for them to happen. And if they don't, the ramifications are major.

Elway Insurance Services
Denver, CO.
Service Since 1925

 

[Yagents]

Losing short term insurance is not an s.e.p.

U are playing with fire. And who wants to do double the work to write two policies within 3 months.

And, even if only 89 days, u still have an extra tax form to fill out for penalty exemption.

 

[FLM2]

Ok so after calling around pretending to be a consumer i found out some minor details but still there is a way around the tax penalty.

here is the break down:

yes:
short term plans are medically underwritten
preexisting conditions apply

however:
The federal tax penalty only applies to individuals that go 90 days in the year with out health insurance.

so with that being said we are kind of both right:
you can avoid the penalty only if

you are uninsured or on a short term plan for no more than 60 days don't go pass the 90 or even use up to the 90th day. the minute you do you are subjected to the tax penalty.

as far as after the the short term medical plan is up, by then there is a possibility of having a life changing event which have a wide wide range of what qualifies as such.
even though the short term plans do not have all of the essential benefits it still gives the consumer some sort of coverage should they need it verses being uninsured for the 60 days.

my information on both threads comes from a market place supervisor as well as a few short term carriers.

so in conclusion

you have 89 days to go with out coverage before the tax penalty applies to you. for those 89 days if you chose short term insurance qualify and are able to get it at least you have some coverage. if you have to or chose to go uninsured you have about 60day for a life changing event to occur qualifying you for an sep before you reach day 90 and the tax penalty applies to you.

This is absolutely ridiculous.

Health insurance protects people against major loss in the event of an illness, you can't predict when that will happen so anyone who gives this kind of advice has no clue.

As Yagents so aptly put it, it is 'playing with fire'.

 

[MaryDallas]

Losing short term insurance is not an s.e.p.

U are playing with fire. And who wants to do double the work to write two policies within 3 months.

And, even if only 89 days, u still have an extra tax form to fill out for penalty exemption.

This was actually recommended to me by a major carrier's sales director: write a short-term to create an SEP. I questioned that at the time.

 

[Yagents]

Cigna supposedly allows it

 

[MaryDallas]

Cigna supposedly allows it

You already knew who I was talking about: you're right, as usual.

 

[FLM2]

You already knew who I was talking about: you're right, as usual.

Cigna allows it but only for Off Exchange applications, that pretty much tells me they are playing fast and loose with the law.

I haven't done one of these and am unlikely to do so.

 

[RayNY]

I have a carrier here that put out guidance stating they need no proof in order to claim that tax SEP through 4/30.

I asked them, and they re-confirmed, they really are not asking for anything.

Carriers are interpreting rules as they please at this point.