Short Term Health Insurance
Short term health insurance plans are temporary plans that are ideal for individuals in certain situations in which they wouldn’t receive full insurance coverage, such as people in between jobs, college students not covered on a parent’s plan, or those who have recently graduated college and aren’t yet receiving coverage from the company they work for.
One should usually consider a short term or temporary health insurance plan as an option only when one knows for certain that they will have a permanent health insurance plan available to them when the term of the temporary health insurance plan is over.
To compare short term health insurance quotes and permanent health insurance quotes from competing insurance companies simply enter your zip into our quote tool to get started.
Things Covered By Short Term Health Insurance
Most policies cover:
Lab Work (Diagnostic)
Inpatient Hospital Stays
Intensive Care (ICU)
Coverage under short term plans varies depending on the insurance company of course. A basic example of options for covered expenses is as follows: On the first occasion, the individual must pay the deductible; On the next occasion the company pays a portion of the expenses, for example 50% or 75%; After that, the insurance company will pay all covered expenses up to a maximum amount, $1 million, for example.
Short term health insurance plans usually allows the individual to go to any physician or hospital they choose in the incidence of an illness or injury.
Covered illnesses or injuries must meet several requirements: (1) must be a services or treatment-related expense prescribed by a physician, (2) must be for essential care according to medical standards, (3) must be an unexpected situation such as sickness or injury, and (4) must occur during the time of policy coverage.
Common examples of covered medical services are necessary surgeries, prescription drugs, x-rays in the case of emergency injuries, rehabilitation treatment, rental of wheelchair or crutches, etc.
What Short Term Health Insurance Does NOT Cover
Most short term health plans don’t, however, cover pre-existing conditions or preventive care such as routine exams; they are simply in place in case of emergency. Other non-covered services are those for self-inflicted illness or injury (regardless of mental state), illness or injury caused by military service or war, illnesses or injuries resulting from illegal narcotics or controlled substance abuse, or cosmetic plastic surgery procedures.
Certain people should be wary of short term health insurance plans, especially senior citizens or women. Routine vision, hearing and podiatry services, as well as foot or eye surgery and devices such as prosthetics, eyeglasses, hearing aids, and corrective shoes are typically not covered under many short term plans. Because of this, senior citizens may want to opt for a higher cost and longer term policy that offers full coverage.
Women must also be knowledgeable of short term health insurance plan restrictions. These plans do not usually cover contraceptive devices or drugs, expenses related to pregnancy or childbirth, genetic testing, or abortion. If a woman is planning on becoming pregnant or is, she should probably choose a higher-coverage longer term plan.
In addition, people with unstable mental histories are often unsuited for short term health insurance because treatment charges associated with mental disorders and illnesses are often not covered.
The Time Period Coverage Is Offered By Short Term Health Insurance
After determining whether a short term health insurance plan fits your individual needs and having carefully considered the advantages and disadvantages, one must determine the length of plan they desire. This type of short term insurance is often offered on a one-month, six-month, or one year basis. Depending on the probable employment status and individual situation of the person, more or less coverage may be needed.
For example, a person in the middle of a job search process (that has no current coverage) may only need a one-month plan because they expect to get a job that will provide them coverage within a month. Also, part time or temporary employees may also want short term health insurance to cover them until they expect to be employed full time.
Short Term Health Insurance Is Often Quite Cheap
Short term health insurance is a cost effective way for individuals and families to obtain coverage for illnesses or injuries that may occur during the coverage period. The main disadvantage that draws many people to permanent full coverage policies instead is that short term plans do not cover pre-existing conditions, which justifies why insurance companies can charge such low monthly premiums for short term coverage.
Take a few moments and compare rates for temporary health insurance plans and permanent health insurance plans side by side! Compare free health insurance quotes now!
Short Term Health Insurance Plans Only Offer Interim Coverage
Short term health insurance is an interim alternative plan. Short term health insurance is a temporary health insurance plan and should not be misused and though of as a full coverage permanent health insurance plan. Remember that with a temporary health insurance plan the insurance company is under no obligation to renew coverage at the end of the term date so if you develop a major health issue while on the plan then when coverage is up you may have difficulty being accepted onto another health insurance plan.
When in doubt choose a permanent individual health insurance plan because of its guaranteed renewable status (meaning that the insurance company cannot drop your coverage and in most states the insurer is prohibited from singling you out for a rate increase).
Short term plans are comparable to plans like COBRA (Consolidated Omnibus Budget Reconciliation Act) with the difference being that COBRA plans are typically full coverage group health insurance plans that only last for a certain time period (usually 18 months) while short term health insurance plans do not offer a full slate of benefits.
These temporary types of plans generally cover unexpected illnesses and accidents. Short term health insurance is not intended for pre-existing conditions and general health care maintenance like doctor visits.
To compare short term health insurance quotes and even permanent health insurance quotes from many different insurance companies simply enter your zip into the box at the top of the page to get started. If you need more information on the ins and outs of how short term health insurance works then read on before you begin your search.
People Who May Benefit From Short Term Health Insurance
People who are between employers who sponsor group health insurance plans are not the only ones who may benefit from purchasing short term health insurance. With the change in demographics, there are other groups of people who would benefit from short term health insurance. A short list of those groups would be:
Legal resident aliens (in US for 2 yrs)
Those who can not afford group coverage
Retirees (as a supplement)
Students (graduates and students abroad)
Those who are waiting for a group benefits package to kick in
Short term health insurance does not include discount plans such as vision, dental, and prescription plans. These additions are usually offered separately.
The Cost Of Short Term Health Insurance
Because of the many restrictions associated with short term health insurance the premiums are reasonable. A lot of money is saved not having to finance preexisting conditions, or long term care. This savings is passed on to the subscriber. You even get to select your choice of physicians in most cases; although, some plans offer HMO’s (Health Maintenance Organizations), and PPOs (Preferred Provider Organizers).
The Advantages and Disadvantages Of Short Term Health Insurance
If a candidate falls in the abovementioned category of those who would benefit from short term health insurance, then of course they may be more prone to find that choosing a short term health insurance plan would be an advantage over a permanent health insurance plan. Some other advantages of short term health insurance include:
Instant Health Insurance Coverage - when you apply, usually coverage takes place the within 24 hours. Many insurers offer an almost instant health insurance option with their short term plans.
Low Rates - short term plans have very affordable premiums.
High Approval - approximately 90% of all short term applications are approved and issued.
Then there are also shortfalls to having short term health insurance as opposed to traditional health insurance and they are:
Cut Off Date - Most will not allow renewal past 3 years.
International Coverage Costs Extra - Typically, they will not cover you if you leave the country for any reason unless you purchase an international travel health insurance rider for an additional premium.
No Pre Existing Condition Coverage - If there is anything that crops up and has been diagnosed already by a doctor prior to coverage, you won’t receive treatment.
Short Term Health Insurance Vs. Supplemental Health Insurance
Supplemental health insurance is not the same as short term health insurance. Supplemental insurance can be used temporarily if your current plan does not meet all of your insurance needs. It is the same in that it does cover accidents and catastrophic events.
Some discount plans can be considered supplemental although some are really not insurance plans to begin with. They are just supplements to what a subscriber may or may not have.
Aflac is an example of a supplemental plan carrier. They usually pay cash benefit in the event of an accident. For example for every day you are incapacitated they will pay a certain amount. Short term health insurance does not pay cash benefits.
Companies That Offer Short Term Health Insurance
Most of the same companies that offer traditional health insurance offer short term health insurance. In addition to traditional companies, there is a long list of others who offer short term health insurance over the internet. These companies sprang up as a result of the Internet.
There are so many online offers nowadays; some of these outfits are creating work-at-home business opportunities for people who otherwise would have never dreamed of working in the insurance industry.
That being said, most people are more comfortable with the familiar major insurance carriers. Making it so convenient to get an online quote influences people to take a chance with little known companies, especially if they are offering low rates but it is usually advised to choose a well known and trustworthy nationwide insurance carrier with strong financial strength ratings.
What It Takes To Obtain Short Term Health Insurance
For most any insurance quote, one can go online. The candidate is usually presented with a short questionnaire. Because short term health insurance is different from state to state, a zip code is usually necessary.
After answering a few questions you can obtain a quote and even decide to be insured with short term health insurance that very same day. To give it a try just use the tool quote at the top of page and you will be on your way.
Get started comparing permanent and short term health insurance quotes from multiple companies now!