Short Term Health Insurance

What is Short Term Health Insurance?

Short term health insurance protects you from the expense of unexpected medical emergencies that occur when you are between periods of having medical insurance. It is a great option if you are between jobs or waiting for coverage to begin at a new job. Short term health insurance plans usually have a shorter eligibility period, meaning that the enrollment process is much faster than typical health insurance plans. They seldom require any kind of physical to enroll and are less expensive than traditional health insurance plans. Coverage often begins as soon as your first payment is processed because they never have a waiting period for enrollment.

What Does Short Term Health Insurance Cover?

Short term health insurance is not as comprehensive as regular health insurance. This temporary medical plan has an expiration date. When your policy expires, payments made to your health care providers will stop. Temporary health insurance also often will have certain restrictions. Many times, only medically necessary expenses are covered. Hospital stays and emergency room visits are usually covered under temporary plans, but many types of doctor visits might not be covered. Some short term health insurance plans do not cover trips to doctors such as dermatologists or podiatrists.

What Is Not Covered?

While temporary insurance is a great safeguard against incurring unexpected medical expenses, some things are not covered. Most pre-existing medical conditions are not covered by short term health insurance. Choosing to buy short term heath insurance can also create a gap in coverage that could lead to a longer waiting period for preexisting conditions when you do become eligible for your new insurance plan.

What Kind of Deductibles must be Met?

Most short term policies have a deductible that must be met before you are eligible for benefits. This deductible varies by policy and will determine the cost of your premium. If you choose a higher deductible, you premium will be lower, but if you choose a lower deductible, expect to pay higher premiums each month.

Which is better, Short Term Health Insurance or COBRA?

One is not necessarily better than the other, but one might be better for your circumstances. If you have a pre-existing condition that you are currently being treated for, COBRA is probably a better option for you. COBRA is more expensive than most short term health plans, so if you don’t need everything that COBRA offers, you will save a lot of money by choosing a temporary health insurance plan.