STM FAQs
FAQs
1. What is Short-Term Medical (STM) insurance?
STM provides temporary health coverage for individuals during gaps in insurance, such as between jobs or outside ACA enrollment periods. It’s not ACA-compliant and excludes certain benefits like maternity and preventive care.
2. Who is the ideal customer for STM plans?
- Individuals between jobs
- Young adults aging off parental coverage
- Freelancers or gig workers
- Early retirees under 65
- People waiting for Medicare or next ACA enrollment
3. Why should I include STM in my portfolio?
- Year-round enrollment (no Open Enrollment restrictions)
- Competitive commissions
- Affordable option for clients who missed ACA enrollment
- Cross-selling opportunities with supplemental products
4. Are STM plans ACA-compliant?
No. STM plans do not cover essential health benefits required by ACA, such as maternity, mental health, and preventive care.
5. Do STM plans cover pre-existing conditions?
No. STM plans typically exclude pre-existing conditions and require medical underwriting.
6. How long can STM coverage last?
Federal rules allow up to 4 months, but some states permit renewals up to 36 months. State regulations vary.
7. Can STM plans be renewed?
Usually limited. Some states allow renewals, others prohibit consecutive policies. Always check state-specific rules.
8. What are the commission structures for STM plans?
Commissions vary by carrier but are generally competitive compared to ACA plans. STM often pays faster due to quick enrollment.
9. Can STM be sold alongside other products?
Yes. STM pairs well with dental, vision, accident, and critical illness plans for more comprehensive coverage.
10. What compliance considerations should I know?
- Disclose that STM is not ACA-compliant
- Explain exclusions and limitations clearly
- Verify state-specific regulations before selling
11. How do STM plans compare to COBRA?
STM is usually much cheaper than COBRA but offers less comprehensive coverage and no guarantee of renewability.
12. What tools can I use to quote STM plans?
Most carriers provide online quoting platforms. Integrate STM quotes into your agency’s CRM for quick turnaround.
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