Excepted Benefit Plans

Short term medical, fixed indemnity, critical illness, and other supplemental insurance plans are considered excepted benefit plans. Excepted benefit plans are not the same as major medical and are not required to comply with the ACA. They are often used to supplement insurance that someone already has. Short term medical is a standalone product designed to be used when someone who is relatively healthy has a gap in their major medical insurance (like, they’re between jobs, just graduated from school, waiting for open enrollment). Sometimes, especially when costs for major medical are out of reach, people will use an excepted benefit plan as their primary insurance. We always say some insurance is better than no insurance, but make sure you fully understand your plan’s coverage and limitations.