Short Term Health Insurance
We help you Pick Best Short Term Plan that will Sail you through Twists and Turns of Life.
Understanding Short Term Health Insurance
Short term health insurance or temporary health insurance is designed especially for individuals who wish to have medical coverage for a limited period of time. This temporary health insurance is for individuals under 65 years of age looking for coverage for themselves or their families during life’s transitions. The short term plans ideally suited for individuals who are transitioning between jobs or who are temporarily without medical insurance. This plan is also for individuals who want temporary form of limited coverage before obtaining major medical health insurances. The short term health insurance is usually offered for a specific duration ranging from 30 days to 180 days, though certain plans do provide coverage for up to 12 months to usually bridge the gap while you are in transition. In the short term health insurance, individuals select the deductible, co-insurance and coverage period so that they prepared themselves in case is any medical circumstance arise. Short term health insurance due to their limitations is not considered as a substitute for Affordable Care Act compliant health insurance but this health insurance is the best option until individuals become eligible for ACA health insurance.
Some Vital Facts Related to Short Term Health Insurance Plans
Some Vital Facts Related to Short Term Health Insurance Plans
- The short term health insurance plans are temporary plans. These plans are not qualified health plans under the ACA so these do not meet the coverage and benefits requirements of the ACA.
- With short term medical plans one get immediately covered as soon as after completion of the application.
- These plans come with several deductible options among which individuals can pick their own deductible amount
- Individuals with short term health plans can drop their coverage anytime with no penalty and they can also receive refund on unused premium.
- Short term health insurance plans have around 1.3 million physicians and health care professionals and also 6000 hospitals in their network, thus individuals with short term health insurance have access to extensive network of hospitals and doctors.
- Individuals with short term health insurance plan will not receive subsidy under the ACA and they might also owe tax penalty under the ACA.
- Short term plans are designed especially for individuals who cannot afford major medical health insurance, as these plans are less expensive.
- These health insurance plans do not offer the same level of coverage and these plans also not cover pre-existing conditions and these also come with some other limitations and exclusions.
- Short term plans can be renewed only limited number of times as per the insurance companies and the state laws and these plans can be availed only for limited duration.
- Short term health insurance are not guaranteed issue, as individuals need to answer a series of medical questions in order to apply for the coverage.
- Short term plans do not have coverage requirements and every plan varies in terms of coverage. Individuals taking this plan need to carefully check the plan details before buying it in order to be aware of the coverage included in the plan.
Short Term Health Insurance Coverage Include
Short term medical insurance include coverage for the following:
Choosing a health insurance plan for yourself and your family is a vital decision that you should do after considering several factors that will eventually help you in taking a sound and informed decision and will also allow you choose a perfect health plan. Factors that need your serious considerations include:
- Consultation fee of physician visits including specialists
- Emergency care expense
- Surgery expense
- Lab tests fees
- Ambulance service
- X-rays charges
However, short term medical insurance plans do not cover for maternity and prescription drugs. Some of the plans cover prescription drugs up to a limited amount only. These plans don’t cover for pre-existing conditions too.
Features of Short Term Health Insurance Plans
In order to cope with the sudden health problems and illness for a limited duration, short term health insurance plans come with the following features:
- Short term health insurance plans can be applied anytime of the year and it only takes minutes to apply for these plans.
- After completion of a plan, one can apply for another term if required.
- These plans have flexible time-frame ranging from 30 to 180 days and in some states short term plans provide coverage for up to 360 days.
- Insurance coverage of short term plans can be anytime dropped without any penalty charges.
FAQ on Short-term Health Insurance Plan
No, short term health plans do not meet the Affordable Care Act requirements. Though, both the plans cover major health problems of individuals but still there is huge differences in both. Affordable Care Act plans are guaranteed issue and no one can be denied coverage based on pre-existing medical conditions. In addition to this, ACA health plans need to provide coverage for ten essential health benefits like:
- Doctor visits for illness or injury or any other outpatient care.
- Maternity and newborn care
- Emergency services
- Prescription drug coverage
- Mental health and substance use disorder services
- Rehabilitative and habilitative services
- Preventive and wellness care
- Laboratory tests and services
- Pediatric services
Whereas short-term health plans are not required to cover these benefits and so short-term plans can vary in terms of coverage. These short-term plans do not cover pre-existing medical conditions. Short-term plans excludes coverage for conditions that have been diagnosed or treated within the 2 to 5 years.
Yes individuals have some choices that will help them reduce short-term health insurance cost if they carefully choose depending upon their situation. Short-term plans premium can be reduced with the following ways:
Choosing a higher deductible – Deductible is the amount which the insured have to pay of the expenses covered by the insurance plan before carrier pay anything. Thus, by choosing a higher deductible individual will be paying more before their insurance carrier will start paying so the premium amount reduce.
Select Plan having fewer benefits – Short-term health plans just like ACA health insurance provide different level of coverage with different benefits for different prices. Individuals can control their short term plan cost like if their plan includes copays, then they can pay a fixed dollar amount either to include doctor’s visit benefit or benefit of prescription drug coverage.
Stay in Network – While having a short-term plan, individuals must always pick a health care provider or a specialist that is in the plan’s network, as this will help them save money because in-network health care service providers agree to provide quality care at reduced price.
According to the federal rule, short-term health plans can be renewed for a maximum of 36-month duration. In some states, sort-term plans are issued only for a specific period of time that cannot be extended. Individuals can apply for back-to-back plans in some of the states to obtain coverage for more than a year. If your short-term plan duration is coming to end, you need to apply for a new short-term plan. Though, you need to remember that your new plan will not be the extension of your previous short-term plan. And any illness or condition you develop while covered under your first plan will be considered as a pre-existing condition for the new plan.
Short-term plans do not provide dental and vision coverage as these plans are designed to protect you in case of unexpected illness or injury. These insurance plans provide temporary coverage for a limited duration only and hence do not include benefits that are generally covered by standard and long-term health plans.