What is Short Term Health Insurance?
Short term insurance is a type of health insurance plan designed to keep someone protected from the potential costs associated with unplanned medical expenses during periods that they may not have healthcare coverage.
Premium subsidies, which are subsidies commonly provided in the form of tax credits to help individuals mitigate the cost of healthcare coverage, are not available to those with short term health insurance plans. This is important to note if you are hoping to receive any type of financial assistance when shopping for health insurance.
What Is Covered Under Short-Term Health Insurance?
The coverage provided by temporary plans is not as broad as the comprehensive plans provided by the Affordable Care Act, but it does provide just about any essential medical care you might need. This includes:
- Emergency services
- Prescription medicine
- Maternity care
- Pediatric care for children
You will find that most of the services provided by typical healthcare coverage are also covered by short-term insurance. Make sure to discuss with your health insurance agent, or health insurance broker, what is covered by your short term plan.
Pros and Cons of Short-Term Health Insurance
Temporary insurance provides you and your family with many benefits. The most obvious is that it offers insurance during a time where you might not typically be covered. There are a few other benefits:
When you apply, you will find out immediately whether or not you qualify. The plan is usually active within a day of approval.
Most physicians accept short-term coverage for their services.
Depending on the state you live in, you can get a temporary insurance plan that can cover you for up to a year. Plans usually start at one month in duration.
There are some reasons to think twice about enrolling in a short-term insurance plan:
This temporary insurance does not count under the Affordable Care Act as creditable. This means you could be subjected to tax penalties if you use short-term coverage for too long.
If you are over 65 years old, you may not be approved for temporary coverage.
Unlike other health coverage plans in the ACA, temporary plans can deny you if you have a pre-existing condition.
When to Choose a Short-Term Health Insurance Plan?
Anyone who has a gap in their coverage because they are between jobs, they recently graduated or they recently divorced should consider temporary health insurance. For some, it is the only way they can remain covered. It is the ideal way for temporarily uninsured individuals to protect themselves against emergency and unforeseen medical expenses.
If you are between coverage, or lost your coverage recently, a short term health insurance plan may be for you. Talk to one of our experienced agents 858-771-4087 or enter your zip code here for information on short term health insurance, or for short term health insurance quotes!