Last week I had two agents tell me that they cancelled their Affordable Care Act plans since they cost as much as a mortgage.  I’ve heard this from friends and family members, and it is sad, but true.  I was happy that the Trump Administration’s short-term plan rule was finalized last month.  Starting on Oct. 2, 2018, Americans can now buy a short-term medical plan that lasts up to 364 days!


For everyone who can’t afford Obamacare, this is a big win, while it hurts the insurance companies still in the ACA.  It was no surprise that there are several lawsuits against the Trump Administration trying to block the expansion of the short-term plans.

Short-term medical does not comply with the ACA. The next question everyone asks is whether they will be subject to the tax penalty for not participating in the ACA in 2018–and the answer is YES.

The tax bill that eliminates the penalty doesn’t go into effect until 2019.  People without health insurance in 2018 are still subject to the penalty ($695 per adult or 2.5% of household income) if the government wants to enforce it.

Several health carriers and industry groups sued the administration last week to block the new Short Term Medical rule.  It is unlikely they will prevail, and likely that you will be selling more STM to your clients next year.


Rebecca Gordon runs the Under 65 Division at Gordon Marketing. If you’d like more information on STM or a contract, email her at She also has a great channel on YouTube with training videos to help you learn all about the Short Term Medical market.