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What Is Short Term Health Insurance?

Short-term Health Insurance has many different names, such as short-term medical insurance, short-term health plans, temporary health insurance, short-term care insurance, term insurance, or STM health plans. Short-term health plans provide major medical type benefits in the case of unforeseen accidents and illnesses.

Both individuals and families can enroll in short term medical insurance plans. These plans last up to 364 days and are renewable for up to 3 years based on your state.

Important Benefits of Temporary Health Insurance

1. You do not have to change doctors. Short term medical plans provide broad networks and/or allow you to go to the healthcare facilities or provider of your choice.
2. Temporary health insurance coverage has no open enrollment period limitations, so you can apply at any time.
3. You will typically be notified within minutes if your application is approved.
4. Short-term medical plans are accessible with limited waiting periods, so in many cases, you can utilize your coverage as early as the next day.

The Difference Between Short-term Health Insurance and Affordable Care Act

Affordable Care Act plans typically have broader advantages than those found in Short Term Medical Insurance plans, but without the premium subsidies available to some qualified buyers, ACA plans cost much more than Temporary Health Insurance plans.

All ACA individual health plans must have the “10 essential health benefits.” Temporary Insurance plans, in comparison, do not have a standardized set of benefits.

Short-term insurance plans typically offer “major medical” type benefits that cover healthcare costs in the event of unexpected accidents and illnesses.

What’s Important to Know About Temporary Medical Insurance Today?

Temporary Health Insurance is a great option for many customers, but there are certain elements to consider if you’re looking into this form of plan.

1.Temporary Health Insurance programs are not renewable. Instead, they necessitate you to reapply if you wish to add another period of coverage.

Short Term Medical Insurance policies cannot be automatically renewed, and you will require submitting a new application.

2. You can be denied coverage because of pre-existing conditions.

Similar to medical insurance before the ACA, Temporary Health Insurance plans can deny your application depending on your current and past health conditions. Insurers will frequently review up to five years of your health history.

3. Short Term, Health Care plans, are not needed to have the same coverage benefits as the Affordable Care Act (Obamacare) plans.

The Affordable Care Act established a very clear set of minimum coverage benefits known as the “10 essential health benefits.” Short Term Medical Insurance provides major medical type benefits but does not cover all of the ACA’s “essential health benefits” such as maternity or mental health.

Consequently, the premiums for Temporary Medical Insurance are usually significantly less expensive but still provide medical coverage for illnesses and injuries and comprise services like emergency rooms, labs, specialists, hospitalization, doctors, and other important benefits.

4. You can cancel your policy anytime you need it.

Most short-term medical policies allow you to make month to month payments up to the maximum term set by your state.

Resources and References:

• Affordable Care Act
• Marketplace Plans Cover