Short-Term Health Insurance Provides Option for Consumers Waiting for
Comprehensive Coverage to Begin, eHealth Survey Finds
More Than Half of Short-Term Health Insurance Policy Holders Expect
to Have Other Coverage Within One Year
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, released results from a survey of
short-term health insurance policy holders showing that a majority
(52%) purchased short-term plans because they expect to enroll in
another form of coverage within one year. The survey also found that
one in five policy holders (21%) purchased short-term coverage only
after first applying for a traditional major medical health insurance
eHealth's Short-Term Health Insurance Policy Holder Survey was
conducted online by email invitation in March 2013 and responses from
261 short-term policy holders were collected. Respondents had all
purchased their short-term health insurance plans through eHealth.com
and coverage was still in effect at the time of the survey. Full
results from the survey are available through the eHealth Media
"Short-term health insurance provides a good alternative form of
coverage for many people during the 2013 gap year," said Robert
Hurley, Senior Vice President of Sales and Operations at eHealth,
Inc. "It's especially valuable for people who are concerned they may
be declined for a traditional major medical plan prior to the
implementation of health reform rules in January 2014. It's important
that people in these circumstances not simply wait for health reform
to kick in but buy coverage to protect them between now and 2014."
Short-term health insurance products are designed to provide
consumers with protections against unforeseen medical bills,
typically for a period of between one and twelve months. Short-term
plans are not major medical health insurance plans. They typically do
not provide coverage for pre-existing medical conditions or
preventive medical care, and may not provide coverage for
prescription drugs. However, they are often easier to qualify for,
tend to be relatively affordable, and often meet the temporary
coverage needs of many consumers.
Results from the survey include the following:
Why consumers choose short-term plans over traditional health
-- More than three quarters (79%) of policy holders identify
affordability as one of the things they like most about short-term
health insurance plans, despite the fact that fewer than three-in-ten
(29%) feel short-term plans cover the benefits they value most.
-- More than half of short-term policy holders (52%) chose short-term
coverage over a traditional major medical health insurance plan
because they expect to begin coverage under another health insurance
plan within 1-12 months.
-- Most policy holders (61%) at least considered purchasing a traditional
major medical health insurance plan before purchasing short-term
coverage; however, only two-in-ten (21%) actually applied for a
traditional major medical plan before purchasing a short-term plan.
-- More than one third (37%) say they chose short-term health insurance
because they only wanted basic coverage in case of emergencies.
Short-term health insurance and the Affordable Care Act:
-- Almost three quarters (73%) of short-term policy holders consider
themselves not well informed about the Affordable Care Act; only one
quarter (27%) consider themselves well informed about the health
-- Two in ten (20%) short-term policy holders believe -- incorrectly --
that their short-term plans will meet the coverage requirement (the
"individual mandate") of the Affordable Care Act in 2014.
-- Nearly two thirds (64%) of policy holders do not know whether their
short-term plans will meet the coverage requirements of the Affordable
Care Act in 2014.
Full results from the survey can be found at the eHealth Media Center.
Additional Consumer Resources:
-- Follow eHealth's consumer blog, Get Smart -- Get Covered
-- Browse our answers to real-life consumer health insurance questions on
Follow eHealth on Facebook and Twitter
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
For more health insurance news and information, visit the
eHealthInsurance consumer blog: Get Smart -- Get Covered.
For media inquiries, please contact:
(805) 527-7733 - direct
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