What is Short-term health insurance?
Short-term health insurance, also called limited duration insurance or term health insurance, can provide a short-term solution to help fill gaps in coverage.
Short-term medical insurance provides coverage in case of any illness or accident for a defined period, often with a much lower monthly premium than other forms of major medical health insurance. There are 2 main advantages of Short-term medical insurance. First being that the plans are usually much more affordable than ACA plans. Second, they have no enrollment period. So, you can enroll outside of open enrollment. President Trump has just lengthened the maximum time limit to 12 months from 3 months previously and some companies even allow you to sign up for 3 plans back-to-back giving 3 years of coverage.
Before You Buy Short-Term Health Insurance: Need to know
Short-term plans cost less because they cover less and follow fewer rules than other insurance options. The Trump administration has loosened regulations that will allow people to look around for a new kind of health insurance. Short-term health plans will now be offered for relatively long periods: just under a year at a time with renewals for up to 36 months. They will tend to have lower prices than the ACA plans through the marketplace, and for some people they will be a cost-effective option. However, the plans are cheaper for a reason. They tend to cover fewer medical services than comprehensive insurance, and they will charge higher prices to people with pre-existing health problems, if they will cover them at all. That means that it’s important to shop carefully. Such plans frequently contain a lot of fine print and tend to have a lot more holes in coverage than the Obamacare plans that most people who buy their own insurance currently have.
Benefits of a Short-term health plan
Short-term medical plans allow you to choose your own deductible. They can be as low as $250. Compared to the average Obamacare deductible being over $6,000 per person.
No enrollment period
One of the main downfalls of Obamacare is the fact that you can only enroll once a year. Most people don’t cancel their insurance because they don’t need it, they cancel because they can’t afford it that month.
Short-term plans will allow you to get coverage any time of the year because they have no enrollment periods
Any Doctor or Hospital
That’s right! With most short term plans there are no networks so you can go to any doctor or hospital facility and still get coverage. You can keep your current doctor.
The application process only takes a few minutes. Approvals can be authorized verbally on the spot, and coverage can begin on midnight of the next day. If you need coverage fast, Short-term insurance would make sense.
STM’s or Short-term medical plans have very low monthly rates compared to marketplace plans. Sometimes 1/4th of the price. So for major coverage with a deductible and maximum out of pocket Short-term plans are much more affordable.
Plans range from as short as one month to up to a year. Some companies are even offering three one-year plans running back-to-back to ensure you have coverage for the longest period of time.
Does Short Term health insurance provide coverage for preexisting conditions?
No, in most cases Short- Term plans do not cover any type of pre-existing conditions. If you have pre-existing conditions you will not even qualify for many Short-term health insurance plans. If you did qualify, they will most likely put a waiting period on benefits for the pre-existing condition particularly. Many people are getting short-term health insurance plans along with group association plans to accomplish a more affordable coverage than through the marketplace with better coverage in some cases.
What if I don’t need my temporary insurance coverage for as long as I had planned?
Short-term medical insurance can be canceled at any time. They are month-to-month with no contract so you can switch plans if offered. Now they are not considered credible coverage by the ACA standards so, if you switch plans and the new plan has a waiting period for pre-existing conditions, your wait will start over.
Will Short Term Health Insurance Work For Me?
Short Term Health Insurance might be right for you if:
- You are waiting for different coverage to begin
- You are not eligible for Medicare coverage either due to age or hours worked
- You are without health insurance and not in an enrollment period
- You missed the yearly enrollment period for Obamacare/ACA plans
- You have a waiting period before you can enroll in another insurance plan
- You’re in between jobs, a part-time or temporary worker, or looking for a less expensive alternative to COBRA
- You are a student, a recent graduate, or have aged out of your parent’s plan
- You’ve retired but are too young to be eligible Medicare.
- Your preferred doctor or hospital doesn’t accept Obamacare, or an Obamacare plan isn’t available in your area.
- Like many other Americans, you simply can’t afford Obamacare.
How Is Short-term health insurance different from Obamacare?
ACA plans have broader benefits than those found in Short-term health insurance plans and, without the premium subsidies available to some qualified purchasers, they have a much higher monthly cost.
All ACA health plans must have the 10 essential health benefits. Short-term Health Insurance plans, in comparison, do not have a standardized set of benefits. Short Term Health Insurance plans usually offer what would be described as streamlined major medical coverage that covers healthcare costs in the event of accidents and illnesses. Most Short-Term Health Insurance plans also cover doctor visits for routine illnesses and injuries.
How do I apply for Short-term insurance coverage?
Applying for a Short-term health insurance plan is easy. Just make a few simple clicks and get a quote!