Short-term health insurance generally covers basic health care bills for short periods. You may opt for short-term insurance between two long-term health insurance policies. These plans are cheaper than normal health insurance plans and you have no enrolment window.
Most short-term insurance plans last up to twelve months at most, though you can extend some up to three years. Short-term insurance covers huge medical bills and not just annual checkups or visits to doctors. However, it has certain conditions that are excluded from insurance coverage.
When to use Short Term Health Insurance
Short-term health insurance is the perfect solution to fill the gaps between your long-term health insurance plans. These gaps arise when you are changing your job or if you cannot afford one as a freelancer.
If a medical emergency arises when you’re between jobs and don’t have your employer’s health insurance to fall back on, you’ll have to bear the full cost of the resulting bills. This is where short-term health insurance is effective. These plans come at a low cost and fill the gaps between your regular health insurance plans – reducing the burden of paying for medical bills without insurance.
Short Term Health Insurance Cost
Short-term health insurance is quite cheap with rates as low as $40 per month. However, these insurance policies come with a high deductible that you need to pay before the insurance can pay for medical bills. Some plans only cover the bills when you have met the deductible. Most plans do not cover pre-existing conditions such as pregnancies. When you opt for short-term health insurance plans, you need to keep in mind that they do not cover medical visits or routine care that come under annual doctor visits.
How long with Coverage Last?
Short-term health insurance has a specific time period or limit on how long the coverage lasts. Earlier, short term health insurance coverage was valid for a maximum of 90 days, but it can now be availed of up to a year or can even be extended up to 3 years.
These policies are, however, built to cover you for a shorter period. If you have any doubts, you can meet your agent and talk about it. Short-term health insurance does not meet the requirements provided under the Affordable Care Act and you may be penalized for the month you use such insurance policies. However, it does come in handy during medical emergencies when you have no long-term insurance to cover you.
Is Short Term Health Insurance Necessary?
You can go for short-term health insurance if you have no pre-existing conditions and are waiting for long-term health insurance to kick in.
If you are a recent college graduate, the alumni organizations generally provide discounts on short-term health insurance; this can cover you until you get a job. If you are no longer covered under your parent’s health insurance plans, you can opt for short-term health insurance while you find yourself long-term insurance.
Short-term health insurance is worth the money as you will be at peace between your regular insurance plans.