The Cost of Short-Term Health Insurance: Individuals Paid $69 per Month in 2012, eHealth Report Finds

The Cost of Short-Term Health Insurance: Individuals Paid $69 per Month in 
2012, eHealth Report Finds 
eHealth Releases 2013 Cost and Benefits of Short-Term Health
Insurance Report: Short-Term Policies for Families Cost $160 per
Month in 2012 
MOUNTAIN VIEW, CA -- (Marketwired) -- 09/17/13 --   Today, eHealth,
Inc. (NASDAQ: EHTH) (www.ehealth.com), which operates
eHealthInsurance.com, the nation's first and largest private online
health insurance exchange, published a report on the 'Cost & Benefits
of Short-Term Health Insurance Plans.' The report found that on
average individuals paid $69 per month for a short-term health
insurance policy in 2012, while families paid an average of $160 per
month. According to the report, the average deductible for an
individual short-term plan was $2,901 while the average deductible
for a family plan was $2,984.  
Short-term health insurance plans are not guaranteed to be renewable,
and the eHealth report found that more than nine in ten (94%)
short-term health insurance policies had a maximum duration of six
months (180 to 185 days). Slightly over half (52%) of all short-term
plans sold to individuals and families covered prescription drugs.  
The goal of eHealth's Cost & Benefits of Short-Term Health Insurance
report is to provide a perspective on cost and benefit trends in the
short-term health insurance market, based on an analysis of a
geographically distributed sample of short-term medical insurance
policies. The report analyzes health insurance plan data from a
sample of over 14,000 individual and family short-term health
insurance policies from 45 states and the District of Columbia. All
plans were purchased through eHealth.com and had coverage in effect
as of October 2012. The full report is available in the eHealth Media
Center. 
eHealth, Inc. has been publishing Cost and Benefits reports on
individual and family major medical plans since 2001, and on
short-term health insurance plans since 2012. Licensed in all 50
states and the District of Columbia, eHealth is one of the few
organizations with national source data reflecting consumer buying
patterns and purchase prices in the individual and family health
insurance market. 
Report Highlights:  


 
--  The average monthly premium paid for a short-term individual policy in
    2012 was $69, while the average monthly premium paid for a short-term
    family policy was $160.
--  Between October 2011 and October 2012, the average premium increased
    3% for individual short-term policies and increased 5% for family
    short-term policies.
--  The average deductible for individual short-term policies in 2012 was
    $2,901, and the average deductible for short-term family policies was
    $2,984.
--  Between October 2011 and October 2012, the average deductible
    increased 59% ($1,821 to $2,901) for individual short-term policies
    and 59% ($1,877 to $2,984) for family short-term policies.
--  In 2012, female individual short-term policy holders paid an average
    of $71 per month for coverage, while male short-term policy holders
    paid an average of $66 per month.
--  In 2012 the average deductible for a female individual short-term
    policy holder was $2,935 while the average deductible for a male
    short-term policy holder was $2,866.
--  In 2012, the maximum duration of short-term plans available on
    eHealth.com was as long as one year in some states; however the
    average maximum duration of a short-term plan purchased through
    eHealth was approximately six months (between 180 to 185 days); only
    4.2% of policy holders enrolled in a short-term policy with a maximum
    duration of 300 days or more.
--  In 2012, policy holders between the ages of 25 and 34 accounted for
    44% of active short-term policies purchase through eHealth.
--  Policy holders age 24 and under accounted for 27% of active short-term
    policies in 2012.
--  Policy holders between the ages of 35 and 64 accounted for 30% of all
    active short-term policies in 2012.
--  In 2012, the majority of short-term policies (75%) had 20%
    coinsurance; less than one-in-five (17%) had coinsurance of 50%; less
    than one-in-twenty (4%) had 0% coinsurance, and the same number (4%)
    had coinsurance of 40%.
--  In 2012, over 55% of all active short-term individual policies
    provided prescription drug coverage and 52% of all active short-term
    family policies provided prescription drug coverage.

  
Methodology Notes 


 
--  The report analyzes the costs and benefits associated with short-term
    health insurance plans sold through eHealth.com in 45 states and the
    District of Columbia.
--  State-specific data in this report is limited to states where eHealth
    has a minimum of 100 active short-term health insurance policies in
    2012. States with fewer than 100 active policies were excluded from
    the reporting of state-specific prices and benefits.
--  The 2012 plan data referred to in this report is derived from
    approximately 14,000 individual and family short-term health insurance
    policies in 45 states and the District of Columbia, all purchased
    through eHealth and with coverage in effect as of October 2012.
--  2011 plan data referred to in this report is derived from
    approximately 17,000 individual and family short-term health insurance
    policies in 36 states and the District of Columbia, all purchased
    through eHealth and with coverage in effect as of October 2011.
--  This report analyzes monthly premiums paid on short-term individual
    and family health insurance policies in 2011 and 2012 along with some
    of the benefits and coverage levels associated with those plans.
--  The data contained in this report represents only those consumers who
    shopped for and purchased short-term health insurance through
    eHealth.com.

  
For more information on report methodology, please review the full
report at the eHealth Media Center. 
Short-Term Health Insurance vs. Major Medical Health Insurance 
Individually purchased short-term health insurance policies differ
from major medical health insurance policies in a number of ways.
Most short-term policies last between six months and 364 days, and
the insurance company is under no obligation to renew a short-term
policy once the term of the policy has ended. By comparison, major
medical insurance plans cannot be cancelled by the insurer except in
cases of continued failure to pay or in case of fraud. While both
plan types may cover routine and emergency care as well as
prescription drugs, major medical plans also typically covers
preventive care, maternity benefits (in some cases with a rider),
brand-name and generic prescription drugs, and chiropractic care,
none of which are typically covered by short-term health insurance.
Major medical insurance policies issued as of September 23, 2010
cannot place lifetime limits on most medical benefits available,
while short-term health plans typically do limit the amount of
coverage provided over the term of the policy. 
Enrollment in a short-term health insurance plan does not count as
"creditable" or continuous coverage, therefore making a person
ineligible for any guaranteed issue or HIPAA plans which a person may
enroll in after they've exhausted 18 months of COBRA health insurance
coverage. In scenarios governed by HIPAA rules, applications for
major medical health insurance or short-term health insurance can be
declined due to pre-existing medical conditions. However, short-term
insurance is typically easier to qualify for, the application process
is typically much shorter, and coverage can often begin much sooner.
Additionally, short-term insurers can grant you coverage but exclude
coverage of a pre-existing medical condition, something major medical
plans may not do. Some exclusions may still apply if your major
medical plan does not cover pregnancy or labor and delivery, for
example. In some instances there may be a waiting period before
you're eligible for certain benefits on a major medical policy. 
About eHealth
 eHealth, Inc. (NASDAQ: EHTH) operates
eHealthInsurance, the Nation's first and largest private health
insurance exchange where individuals, families and small businesses
can compare health insurance products from leading insurers side by
side and purchase and enroll in coverage online. eHealthInsurance
offers thousands of individual, family and small business health
plans underwritten by more than 200 of the nation's leading health
insurance companies. eHealthInsurance is licensed to sell health
insurance in all 50 states and the District of Columbia. eHealth,
Inc. also provides powerful online and pharmacy-based tools to help
seniors navigate Medicare health insurance options, choose the right
plan and enroll in select plans online through PlanPrescriber.com
(www.planprescriber.com) and eHealthMedicare.com
(www.eHealthMedicare.com).  
For more health insurance news and information, visit the eHealth
consumer blog: Get Smart -- Get Covered. 
For media inquiries, please contact:  
Sande Drew
eHealth, Inc.
(916) 207-7674
sande.drew@ehealth.com 
Brian Mast
eHealth, Inc.
(650) 210-3149
brian.mast@ehealth.com