Basics of Short Term Health Insurance
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. Not having insurance at all isn’t feasible foremost Americans, particularly those with children, but the premiums charged by COBRA can outweigh its convenience. Often times, these people find that short term insurance offers an affordable way to keep limited coverage.
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. These periods can last from 30-90 days, and a good number of medical emergencies could arise in that time. Temporary insurance provides protection for accidents and emergencies during these windows of time.
As you consider short term coverage, be aware that it does have some limitations. Preventative coverage and wellness checks are not covered under short term medical insurance. Instead, you’ll find that only injuries and illnesses are covered.
This means that pre-existing conditions are also not 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 policy’s restrictions as you review the plan’s terms.
Finding the right short term medical insurance plan for you starts with determining how long you’ll need it. It’s usually available in durations anywhere from 1-6 months, but you can also extend some policies to 12 months. Discuss adjusting the length and deductible with your plan representative at the time of purchase.
Often times, people who’ve recently left their jobs don’t consider short term medical coverage because they’re eligible for COBRA coverage. However COBRA has some clear disadvantages that should be considered before making a decision.
COBRA allows a terminated employee to retain health insurance coverage through their former employer’s provider for up to 18 months. As much as 100% of the resulting premiums may need to be paid, and there are usually expensive administrative fees added onto the bill. The nonprofit group Families USA reports that COBRA costs can consume up to 84% of average monthly unemployment wages.
That’s a perfect example of an instance in which short term insurance makes more fiscal sense. 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.
Posted in Healthcare Professionals, Healthcare Services