Overview of Short Term Health Insurance
As job losses in the United States has risen to new heights, so too has the number of citizens turning to short term health insurance. For most Americans, being without health insurance simply isn’t plausible, which makes short term insurance a way to affordably retain some level of coverage.
In addition to those people who have recently been laid off or terminated, temporary insurance is useful to those who have found new employers that require them to wait through a probationary period before being eligible for a new plan. These periods can last from 30-90 days, and a good number of medical emergencies could arise in that time. Temporary insurance provides protection for accidents and emergencies during these windows of time.
Before purchasing short term coverage, you should be aware that it’s by no means a comprehensive plan. Preventative coverage and wellness checks are not covered under short term medical insurance. Instead, you’ll find that only injuries and illnesses are covered.
Pre-existing conditions are also not covered. Keep this in mind as you apply for coverage, both so that you know what to expect going in and also so that you can answer the application honestly. Pay careful attention to any limitations found in the plan’s policies.
Items that can be customized to suit your needs on short term medical insurance plans are the overall length and the deductible. It’s usually available in durations anywhere from 1-6 months, but you can also extend some policies to 12 months. Your plan administrator can offer more information. Also consider what sort of deductible you’d like to have in place, as that factor can be altered to suit your needs as well.
Because COBRA coverage is generally fairly convenient, many people who’ve changed jobs or lost their jobs don’t consider short term medical coverage. They may be missing an opportunity though, as COBRA has several drawbacks that may outweigh its convenience.
Although a former employee can keep their old insurance plan for as long as 18 months after termination, that convenience can prove to be pricey. The user may have to pay 100% of premiums, not to mention administrative fees are often added on. The nonprofit group Families USA reports that COBRA costs can consume up to 84% of average monthly unemployment wages.
As such, you’d be advised to carefully decide whether COBRA or short term insurance makes the most sense for you. To see if short term medical insurance is right for you, contact your former or pending insurance representative, or search for additional information online. After reviewing your specific situation and what corresponding levels of coverage you require, the right plan can be found for you.
