According to the Wisconsin State Journal, most of Wisconsin’s short-term health insurance plans do not cover mental health and substance abuse treatment, and none cover maternity care. All of them pay for prescription drugs and cancer treatment.
Short-term plans, usually cheaper than regular insurance as they don’t need to meet many requirements of the Affordable Care Act, denied 31.3% of claims in 2021, compared with 11.7% for plans in Wisconsin on the federal marketplace.
Over 200,000 residents received insurance through the individual marketplace of what is sometimes called “Obamacare,” while only 10,310 had short-term plans in 2021. The short-term plans, meant to provide insurance for brief periods of time between more stable coverage, can last up to a year in Wisconsin and then be extended another six months. The average monthly premium in 2021 was $157, and people ages 55–65 were most likely to enroll.
Critics say many consumers are unaware when they sign up that the plans are not required to cover preexisting conditions or “essential benefits” like maternity care and mental health care, which can cause unexpected bills.
Gov. Tony Evers in his last two budget proposals — including this year’s — sought to limit the total duration of the plans to six months.
