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What Does Short Term Medical Insurance Cover?

Short-term insurance coverage plans are useful if you need the peace of mind that insurance provides, but aren’t in a situation where you can get long term main medical coverage.

This can happen if you missed the open enrollment period for major medical insurance, are waiting for your major medical plan to begin, are waiting for your Medicare coverage to start, or require proof of insurance quickly.

Insurance Benefits of Short-Term

The coverage you get with short-term plans varies from the benefits conferred by major medical policies that comply with the Affordable Care Act (ACA), also known as “Obamacare.”

Short-term policies generally cover the services and treatments related to unexpected illness and injury, such as outpatient visits to the doctor, emergency room visits, hospital stays, surgeries, and related x-rays and laboratory services.

Some short-term insurance plans also include coverage for prescription drugs and other benefits, but charge more for those extra benefits. Of course, the specific benefits depend on the specific short-term plan and insurance company you select.

Many insurance companies require applicants to answer a medical questionnaire when they apply for a short-term plan. They can decline to cover you if you do not meet their criteria. But, if you are approved, you can get your best short-term insurance plan quickly.

You should be aware that short-term policies can only cover you for a period of 30 days up to 12 months. That gives many persons plenty of time to get an ACA-compliant health insurance plan during open enrollment.

You ought to also know that having a short-term or temporary insurance policy does not meet the health insurance requirements of the ACA, so you may still be subject to a tax penalty on your next tax return.

Exclusions in Short-Term Insurance

Short-term plans don’t include all routine medical requirements. Two significant exclusions are pre-existing conditions and maternity coverage. Frequently, drug coverage and services for preventive, dental, vision and mental-health care are also excluded.

You’ll require disclosing any pre-existing conditions to your insurance company when you apply for your policy. If you fail to inform the insurer that you have a pre-existing condition, your policy can be terminated, and your pre-existing condition won’t be covered.

Other Forms of Insurance

You can also buy other forms of insurance to have extra coverage while you have short-term coverage.

For instance, accident insurance gives you cash payments for covered health events, which you can then use to pay for hospital stays, examinations, and visits to the emergency room, and temporary housing and transportation costs associated with your health requirements.

Critical illness insurance pays you a lump sum in the event that you are diagnosed with a critical illness like cancer, heart attack, or stroke.

Resources and References:

• Cancer Insurance
• The Affordable Care Act
• Basics of Health Insurance