Opportunities Within the Short-Term Health Insurance Market

Learn more about the challenges of current short-term health plans, our approach to solving them, and a proposed new plan design we’ve created.

9% of the US population is currently uninsured due to the rising costs of health insurance. More affordable, short-term plans are available but offer significant room for improvement.

The regulations of STLDI plans, or short-term limited-duration insurance, recently changed, allowing customers to use them for 36 months, rather than 3.

These plans offer a much lower monthly premium, but they are currently only being utilized by 200k people, providing a timely opportunity to rethink the typical STLDI structure.

In this white paper, we will be discussing:

  • The challenges preventing STLDI plans from being reliable coverage options

  • Approaches towards solving these challenges
  • A proposed new plan design + its assessment

Download the Opportunities Within the Short-Term Health Insurance Market Paper

Exploring Opportunities Within the Short-Term Health Insurance Market

Learn more about short-term limited-duration insurance (STLDI) plans, including both their advantages and challenges compared to typical health plans. In addition, read about potential approaches to these challenges, a proposed new plan design, and our assessment of the design.

An Overview of STLDI Plans

Short-term limited-duration insurance (STLDI) plans offer more affordable coverage options than the typical QHP, or Qualified Health Plan. While they are currently fairly limited in their coverage, these companies could certainly redesign the plan structures to attract more potential customers seeking a short-term solution. Ultimately, great opportunity lies ahead for young, healthy individuals to begin utilizing these unique health plans.


Challenges of STLDI Plans & Our Approach to Them

There are five main challenges currently preventing STLDI plans from being trusted coverage options. While they do offer lower premiums, they also have higher potential for out of pocket costs and impose dollar limits to their coverage. STLDI plans also lack coverage for all essential health benefits and deny anyone with preexisting conditions, in addition to lacking any provider networks.


Our Proposed New Plan Design + Assessment

We created a hypothetical STLDI plan that is designed to keep premium costs as low as possible while controlling for an unlikely health event in healthy consumers who are low utilizers of healthcare. While it would be challenging to pull customers away from their current employer-sponsored plans, this option would benefit certain segments of the population, like millennials.

Want to learn more about Opportunities in the Short-Term Health Insurance Market?

Download the white paper to read the full report.