What to Know When Buying Short Term Health Insurance

Are you looking for a fast and affordable health insurance plan? Then you can consider getting a short term health insurance. It is no lie that health insurance is important and does not come cheap, however, without it, you might fail to get some medical attention.

Today, millions of American citizens either completely fail to get treatment or experience delays because of lack of health insurance. You definitely don’t want to be part of these statistics.

Purchasing a short term health insurance is not as complicated, but if you are new to it, you definitely want to know it better to determine if it is a good option for you. Read on to find out more about this insurance plan.

What Is a Short Term Health Insurance?

This insurance covers both accidents and illness for a set period of time, majorly 36 months. They have a much lower premium when compared to other health insurance plans.

You can use them to see any doctor or go to any hospital that is willing to accept it. They take a short time to be approved and can also be used almost immediately.

What It Covers

Even though this insurance plan is limited, it covers some of the most important treatments that one you might seek like:

  • Lab tests
  • X-rays
  • Emergency care
  • Doctors’ visits
  • Specialists visit
  • Hospitalizations

On the other hand, short term health insurance does not cover:

  • Maternity care
  • Pre-existing medical conditions
  • And it has limited drug coverage

If you happen to have had any significant health issues in the past five years, then this plan might not be the best insurance for you.

Benefits of Short Term Health Insurance

Short-term insurance is a great solution to many emergencies. It may save you quite a chunk of funds when a tricky situation emerges. Here are some of the advantages of buying short term health insurance.

1. They Are No Longer Short

In the recent past, you could only have short term insurance for a period of 3 months. This is no longer the case. With the new regulations, you can also choose to renew it for 36 months. This means that you can actually have the short term health insurance for 3 years.

However, its renewability also contributes to high premiums that are associated with Obamacare coverage. The long short term plans are also estimated to cost 35% to 50% more than those that last for a maximum period of 3 months. So you can choose to save money and get a nonrenewable short term plan.

2. You Are Able to Choose Your Own Type of Cover

The Obamacare regulations, health insurance is required to cover at least 10 important benefits. All ACA compliant plan must offer maternity, prescription medicine, mental health services, and all other general treatment.

Most health plans have a set standard or limit of coverage according to how much you pay. With short time insurance, you do not have to pay all these, you can choose what you want to pay for you are in a better position to control the kind of coverage that your health insurance has.

3. Short Term Health Insurance Can Let You Go Anywhere You Want

Any plan that complies with the ACA tries to limit their premium costs by restricting their provider networks. In fact, some only work with one hospital.

With short term, you are more flexible and can seek treatment in any hospital that takes it or see the doctor that like. You can use it around the country if you travel.

4. You Are in Healthy Company

You have to meet the health insurance for a short term plan before you can buy it. You are most likely to have less medical problems with this type of insurance cover because it does not cover any previous medical conditions.

It has a healthier risk pool than other covers and this means lower premiums. Short term plans cost almost 54% less than other ACA plans because of the kind of coverage it offers.

5. No Dealing with ACA Repeal

Even though the Trump administration did not manage to repeal the ACA, all hope is not lost for the Obamacare opponents. There are minimal chances of the bill passing since the Democrats gained control of the house in the 2018 mid-term elections.

If you do not want to deal with the feeling of your health insurance hanging in the balance, then a short term plan is the perfect solution. Should the ACA plan cease, with a temporary plan, you will not be affected.

6. You Meet Your Insurance Needs

Having a short term health insurance means being able to cover all your healthcare needs without having to compromise your values. This is because they cover basic care only and not the services that you might object to.

With health insurance, the money you pay goes to the insurance pool and can be used to pay any other customer’s claims. This means your money can be used to pay someone’s maternity services and other more expensive health services. However, since a short term is restricted on what it covers, you do not have to worry about funding some else’s insurance needs.

7. It Is Widely Accepted by Healthcare Providers

The ACA plans are today narrowing down their networks. Meaning, they only work with a number of hospitals and doctors.

The short term plan has a much wider network coverage and very many hospitals and doctors as well are willing to accept it. This includes many top hospitals and cancer centers in the country.

Limitations of The Short Term Insurance

The short term medical plan is a great choice. It also has a few disadvantages. Here are a few.

1. It Is Limited

The main goal of this insurance is to provide affordable health care coverage over a limited period of time. With it, you will not have to pay out of your pocket. However, its cover is very limited and you might have to pay for some medication as well.

2. It Does Not Meet the Affordable Care Act Standards

This ACA also called the Obamacare, introduced a number of rules to the insurance market which requires all major insurance providers to provide specific rules that can allow a huge number of Americans to get a medical cover. These rules, however, do not apply to short term health insurance covers.

3. Short Term Is Not Guaranteed

Unlike traditional health plans that can be custom made to accommodate all your health care needs including any preexisting conditions, with a short term you can be declined based on your medical history. This means that if you do have any such conditions then you might be able to qualify for a short term medical plan.

Persons Who Qualify

Health insurance is very important, and living without one is risky and might be expensive should you need healthcare. If you are not able to afford the traditional health insurance for one reason or another, then this insurance can work perfectly for you as you work out a more basic plan.

Medical bills can be hugely overwhelming, especially during emergencies but with a short term plan, you will not have to worry about such. This plan was designed to protect you during medical coverage gaps.

You are the perfect match for a short term plan if you are:

  • Below 65 years and in good health
  • A foreign student in a U.S school
  • Young but you can no longer be insured under your parents’ health insurance plan
  • In need of a cover for a specific time. For example, if you are in between jobs
  • Retires and no longer insured by your former employer and you are still too young to enroll in the Medicare program
  • In need of health insurance and the enrollment period has passed and you do not qualify for a special enrollment period
  • Not able to afford the premiums of other health plans yet

If you fit in this category then you are the perfect candidate for such insurances and you should definitely consider these options.

Consider the Short Term Health Insurance Plan for Your Temporary Health Insurance Need

With this temporary plan, you can get covered for weeks, months, or years when you cannot be able to get a more traditional health cover plan. The best thing about a short term health insurance is that you can cancel it anytime you want and you do not have to worry about paying more than one premium at once should you get another coverage while still on it.

There are insurance companies that offer a refund if you have not used your cover within the first 10 days of signing up. You can also take this as an opportunity to try out insurance companies. Temporary insurance is a smart solution for anyone in good health and needs a cover especially for unexpected medical situations.

Check out our website for more information and relevant health tips.