Insurance Archive

Short Term Health Insurance 101

As job losses in the United States has risen to new heights, so too has the number of citizens turning to short term health insurance. Being without health insurance is simply not an option for most Americans, particularly those with families, so short term insurance can provide a more affordable way to meet those needs.

Temporary insurance is not only for people who have recently lost their jobs, but also for those who have recently switched jobs and are waiting to complete their probationary periods. In the event that youve switched jobs are subjected to a 30-90 period preceding insurance eligibility, short term insurance can protect you and your family in the event of injury or illness.

Before purchasing short term coverage, you should be aware that its by no means a comprehensive plan. Preventative coverage and wellness checks are not covered under short term medical insurance. Instead, youll find that only injuries and illnesses are covered.

Furthermore, you will not be able to have doctors visits and care related to pre-existing conditions covered. Keep this in mind as you apply for coverage, both so that you know what to expect going in and also so that you can answer the application honestly. Pay careful attention to the policys restrictions as you review the plans terms.

Finding the right short term medical insurance plan for you starts with determining how long youll need it. Short term plans may be purchased for 1-6 months, or could even be extended to 12 months, based on need. Your plan administrator can offer more information. Also consider what sort of deductible youd like to have in place, as that factor can be altered to suit your needs as well.

Because COBRA coverage is generally fairly convenient, many people whove changed jobs or lost their jobs dont consider short term medical coverage. However COBRA has some clear disadvantages that should be considered before making a decision.

While COBRAs ability to allow a former employee to keep their old coverage for a term of up to 18 months is convenient, it comes at an expensive price. While this seems like a great benefit, its an expensive, one, with the user often having to pay 100% of premiums as well as administrative fees. A report from Families USA, a nonprofit group, has suggested that up to 84% of a familys average unemployment benefits can be spent on COBRA premiums.

In that case, short term insurance may be a better option. To see if short term medical insurance is right for you, contact your former or pending insurance representative, or search for additional information online. The right plan can easily be found based on a simple review of your needs.

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