Let’s talk about Short Term Health Insurance tonight! Underwritten by Golden Rule, Short Term Health Insurance is coverage that provides flexible health coverage solutions when you are in dire need of period coverage over the transition of your life. Short term health insurance provides temporary coverage during a fall in permanent coverage, avoiding expensive medical bills arising out of unexpected health or life and death emergencies. It can be a good option for healthy individuals or those who do not require regular health services or daily prescription needs. It is an investment worth putting your money into who want a health plan in case of a health emergency or require immediate coverage.
Are you eligible for short-term health insurance?
The answer to that is yes! If you are able to fulfil any of the following conditions:
- If you cannot apply for ACA (Affordable Care Act) or Obamacare coverage because you’ve missed the Open Enrollment and don’t qualify for a Special Enrollment.
- Waiting for your ACA coverage to begin
- Looking for coverage bridging you to Medicare
- You’re turning 26 and now coming off your parent’s insurance.
- Tossing and turning between jobs or waiting for benefits to begin at your new job
- Healthy and under 65
What does short-term health insurance provide?
Short-term health insurance would differ from various plans provided by different companies. A plan like short-term health insurance does not require you to comply with the guidelines of Obamacare, as an ACA plan would require minimum essential coverage. A short-term health plan does not require the same standards.
Usually, short-term health insurance provides some level of coverage in preventive care, doctor visits, urgent care and emergency care and, in some cases, prescriptions. There might be some plans out there offering cost savings for seeing in-network providers. A customer is highly suggested to read through the ‘exclusions and limitations’ before buying any plan. You will be informed of what is covered and what is not covered by a particular plan.
How much will short term insurance cost you?
If you’re considering short-term insurance, generally, your costs will cover up for: –
- Premium: The monthly fee for having coverage, a premium will vary depending on the level of coverage provided by various companies, including deductibles and coinsurance, as well as the other types of services covered.
- Deductible: A deductible is seen strikingly higher than many traditional health plans. A deductible requires you to pay out of your pocket until your plan starts sharing costs.
- Coinsurance: The percentage of costs shared with your plan after you meet your deductible is called coinsurance. Often shown in percentages, a short-term plan would consist of a deductible and coinsurance.
- Copay: This fee covers the aspect of your certain doctor visits, when you are required to pay a fee for visiting a doctor, usually payable at the reception. Some short term would ask for an additional Copay fee which would cover such frequent doctor visits.
- Other out-of-pocket costs: You might come across some health care services which would not be covered or may be limited to the coverage we’ve signed up for, for example, maternity care, mental health, dental services etc., which might result in an expense covered from our pocket.
All of the costs mentioned above may vary from plan to plan from company to company, depending upon whatever we choose, so it is highly advised to go through the terms and conditions of a plan and compare various costs before choosing a plan that suits you the best.
Benefits and Drawbacks of Short-Term Health Insurance Starter
Short-term health insurances offer you flexible, fast coverage you need for changing times in your life. With these plans, you’re offered:
- Fast coverage, as soon as the day after application.
- Deductible amount from several options.
- Length coverages vary from one to nearly twelve months.
- Drop coverage with no penalty is more permanent health insurance comes along.
- The ability to apply for new health insurance if the existing one expires, if needed.
- Access to an extensive health care professionals network comprising nearly 1.4 million physicians and other health care professionals and approximately 6500 hospitals and other facilities.
- You would have a significantly higher deductible than traditional health plans with other expenses.
- No coverage for preexisting conditions and limited coverage for most plans.
- A need for a medical questionnaire for the approval of specific coverage.
- The coverage may not be mandated or standard, so health plans highly vary in covered services and costs, which is out of the government sight.
Of course! Short-term health plans are not suitable for everyone out there! To get comprehensive coverage, one must opt for a traditional health plan which can either be offered by the employer or bought individually through an insurance company or the Health Insurance Marketplace.
Some advisory bites for buying a short-term insurance
Since you are purchasing a short-term plan which is not so similar to the Obamacare plan, you might have to keep some pointers in mind as plan your coverage needs:
- ACA plans are a guaranteed health plan issue, implying you cannot be denied coverage based on preexisting conditions.
- Short term plans are not a guaranteed issue as they do not cover preexisting conditions, and you might be required to go through a medical questionnaire for coverage approval.
- ACA health plans cover ten essential health benefits, including maternity and newborn care, mental health and substance abuse disorder services etc.
- Short term insurance plans do not require many coverages, so their plans vary in what they cover. Read through the details of every plan carefully before making any investment.
Well, there is no dying that a short-term health insurance plan will save you some money. But go through the TnCs of any plan presented and make a wise choice.