Short-term health insurance is a convenient health insurance policy option where you need coverage for your life transition moment.
Qualifications for a Short-Term Health Insurance
Short term insurance may be for you if you’re:
- Waiting for ACA coverage to commence
- Waiting for coverage to link you to Medicare
- Turning 26 and coming off your parent’s insurance
- Healthy and under 65
- Between jobs or waiting for benefits to begin at your new job
In this and many other cases, short-term health insurance, also referred to as temporary health insurance or term health insurance, maybe the right option. This void in coverage can be filled before you can select a longer-lasting approach.
When Do I Get Short-Term Health Insurance?
Short-term health insurance can be the best option if you have a difference in health insurance plans, such as whether you’re moving jobs or being a freelancer and can’t afford a package on the Affordable Care Act (ACA) exchange.
You may be considering what to do if you don’t want to leap for more lucrative options like COBRA coverage or the plans offered via the ACA.
This is where short-term health care fits in. Short-term health insurance will offer a low-cost, short-term alternative to help you bridge holes in health coverage and help you stop paying medical costs without health insurance.
How Much Will Short-Term Health Insurance Cost?
Short-term health care can be very cheap, with premiums as little as $40 a month. However, bear in mind that all policies come with a large premium that must be reached before the insurer continues covering treatment costs.
Other policies offer complete compensation once you have reached the premium, and others provide extra protection. Many plans do not cover pre-existing conditions, such as maternity. Typically, short-term health insurance would not pay well for hospital appointments or other regular treatment provided by an annual doctor’s appointment, so all of these costs must be considered before considering short-term insurance.
If you are pregnant or have another major pre-existing illness, you will need to consider other choices. You can apply for health insurance through the health exchanges developed by your state under the Affordable Care Act.
How Long Will Coverage Last?
Short-term health care plans have a time limit on how long they are going to provide coverage. You will only be covered for up to 90 days under the Obama administration. However, these regulations have recently been relaxed, and today, you can provide short-term health benefits for up to one year, with specific incentives for an extension for up to three years.
Again, these plans are intended to protect you and your belongings in the brief amount of time you may have in your standard insurance plan. An insurance provider will clarify the variations between the policy and what you’re supposed to be responsible for. Short-term health insurance does not comply with the insurance provisions of the Affordable Care Act.
This implies that you can be penalized for months when you have a short-term health care policy. This legislation no longer extends to the federal government, but more states create health care mandates with penalties.
However, it will also cover you financially if you have a significant medical emergency. Before signing on the dotted line, make sure to weigh all of your health coverage choices, such as ACA plans, or continue your parents’ health benefits.
Is Short-Term Health Care the Best Thing for You?
You can consider using a short-term health insurance policy if you do not have a pre-existing illness, are not pregnant, and are only waiting for a long-term health insurance policy.
If you are a new college graduate, many alumni associations will provide you with a short-term health care policy contact and discount when you first graduate. This will protect you when applying for a job and waiting for your health care coverage to resume with your new employer.
Besides, if you are no longer available for benefits under your parents’ health insurance plan, you can continue to enroll in a short-term program when you are shopping for a better one or waiting for open enrollment options.
Since short-term health insurance premiums are so cheap, it might be worth a little bit of money to get peace of mind to take care of your risk of getting a serious medical emergency or health crisis. Just note that these policies are not meant to be a long-term replacement for full insurance.