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Short Term Health Insurance
Short term health insurance is used to supplement any insurance gaps on a temporary basis and is attractive due to its flexibility and affordability. This may be ideal for people who are in between jobs, college students just coming off their parent’s plans, or early retirees who are waiting for Medicare to kick in. Although these plans have limits, the benefits they offer far outweigh the risks of not being insured during that period of time.
Advantages of Short-Term Health Insurance
Short-term health insurance offers many attractive advantages for people who are facing the option of being uninsured for a short period of time. The premium costs, for example, are usually cheaper than the regular coverage costs. In addition, short term insurance does not have preferred healthcare provider requirements which allows its enrollees to seek care in any hospital or with any healthcare professional in the country. Another advantage that short term health insurance offers is that the application process is really simple and takes a very short amount of time. In fact, in some cases people can get approval and be covered within 24 hours of applying.
What It Covers
Short term insurance is mainly used to cover major health care costs, and can forego other benefits to provide a lower premium. Although sometimes referred to as “junk insurance”, the benefits that short term insurance offers to people who understand the product are excellent. For example, a 30 year old male who is healthy could potentially pay as low as $30.00 in monthly premiums with a $5,000.00 deductible. This kind of coverage highlights how catastrophic bills can be hedged with temporary coverage to treat sudden illnesses or accidents. This also makes short term coverage an attractive and cheaper alternative to COBRA coverage, which is usually more expensive and not practical for, say, college students.
Limitations of Short-Term Health Insurance Covers
Short-term care does not over any pre-existing medical conditions, prescription drugs, or preventive care. In addition, as short term care is not required to meet the benefits deemed essential under the recent healthcare reform, it does not cover substance abuse treatment or mental health services. The dollar amount of the benefits that consumers received is capped. Also, there are currently no government subsidies that will help pay for short term health insurance, and they are not available for purchase on government exchanges. These policies are sold directly by insurance companies or through brokers or websites.
Understanding that short term health insurance is only meant for a short term solutions, and that it will not function as a regular health benefit policy will help in understanding this useful financial tool. While short term health insurance may not be right for everyone, it does offer an attractive option for temporary workers, students, and people in between jobs. They are a lot easier and faster to qualify for, and are very affordable as well. For someone who is healthy and wants an affordable way to be covered for a temporary amount of time, short term health insurance is one of the best options currently available.