What does QHP stand for in health insurance terminology?

The term QHP stands for Qualified Health Plan. A Qualified Health Plan is a type of health insurance plan that meets the requirements set by the Affordable Care Act (ACA). These plans are offered through the Health Insurance Marketplace and must provide a comprehensive range of health benefits, including essential health benefits, limit out-of-pocket expenses, and not impose lifetime or annual limits on coverage.

Qualified Health Plans are crucial for individuals seeking to obtain health insurance because they ensure that the coverage includes specific benefits and consumer protections. For instance, plans categorized as QHPs must provide coverage for preventive services without cost-sharing, guaranteed issue, and the option for individuals with pre-existing conditions to enroll. This makes QHPs a viable option for those applying for financial assistance through tax credits and subsidies based on their income level, further enhancing access to affordable healthcare.