Looking for affordable health insurance but don’t need full coverage? Short term health insurance might be the solution you’re searching for. But what exactly is it, and how does it work? In this article, I’ll walk you through everything you need to know about short-term health plans so you can decide if it’s the right choice for you.
What Is Short Term Health Insurance?
Short term health insurance is a type of medical coverage designed for people who need temporary insurance. Whether you’re between jobs, waiting for your other health insurance to kick in, or just need something to fill in the gaps, short term plans offer a way to cover yourself for a short period usually from a month to about a year.
It’s not as comprehensive as regular health insurance, but it can help protect you in case of accidents, emergencies, or unexpected illnesses during that time.
Unlike traditional health insurance plans that require you to commit for a whole year or longer, short term plans give you flexibility. They’re cheaper, and you can adjust them based on how long you need coverage. But, there’s a catch these plans don’t cover as much as your average health insurance. So, you need to weigh the pros and cons before deciding.
How Do Short Term Health Insurance Plans Work?
Short-term health insurance plans cover only basic medical services, and the coverage can vary depending on the plan you choose. You’ll typically have protection for things like emergency care, urgent visits, and a few doctor’s appointments. Some plans may even cover hospitalization, but they usually don’t cover things like maternity care, mental health treatment, or pre-existing conditions.
The main idea behind short-term health insurance is to bridge the gap during times when you don’t have regular coverage. For example, if you’re waiting for your job-based health insurance to start, a short-term plan can give you peace of mind until your main coverage kicks in.
However, these plans come with their own set of limitations. For one, they often don’t comply with the Affordable Care Act (ACA), which means they don’t have to cover essential health benefits like prescription drugs or preventive care. So, while you might pay less upfront, it could cost you more in the long run if you end up needing those extra services.
Who is Eligible for Short Term Health Insurance?
You’re eligible for short-term health insurance if you meet basic requirements, like being an adult who’s temporarily without other coverage. It’s designed for people who are between jobs, waiting for open enrollment for the next ACA plan, or just need a quick fix while traveling.
However, there are a few restrictions. For example, if you have a pre-existing condition, you might not be able to get coverage at all. Short-term plans usually won’t cover treatment for ongoing illnesses, so keep that in mind before signing up.
Benefits of Short Term Health Insurance
- Affordability: The biggest draw of short-term health insurance is the cost. These plans are typically cheaper than traditional insurance plans, which is why they’re popular among people looking for budget-friendly options.
- Flexibility: Need a plan for just a few months? Short-term plans let you decide how long you want coverage, which makes them a good fit for temporary situations.
- Quick Enrollment: With short-term plans, you don’t have to wait for a specific enrollment period like you do with ACA plans. You can usually apply and get approved within days.
Limitations of Short Term Health Insurance
- Limited Coverage: Short-term plans don’t cover nearly as much as regular health insurance. If you need preventive care, prescriptions, or care for pre-existing conditions, you’re out of luck. They’re mainly designed for emergencies and urgent medical needs.
- Not ACA-Compliant: Short-term plans don’t meet the ACA’s standards for essential health benefits. In some cases, this can lead to penalties, especially if you live in a state where short-term plans are restricted.
- Short-Term Nature: While it’s great that short-term plans are flexible, that’s also a drawback. Once the term expires, you’ll either have to renew or go without coverage, which can leave you in a bind if you need it longer.
How to Choose the Best Short Term Health Insurance Plan
Choosing a short-term health insurance plan isn’t like picking your favorite candy at a store. You need to consider your needs carefully.
First, think about how long you’ll need coverage. If it’s just a few months, a basic plan might do the trick. But if you’ll be without insurance for a while, you may want a more comprehensive short-term plan with slightly better coverage.
Also, look into what the plan covers. Does it cover the emergency room? What about doctor visits or surgeries? These are things you need to know before signing up. Comparing different plans and talking to an insurance broker can help you get a better understanding of what’s out there.
Cost of Short Term Health Insurance
The price of short-term health insurance varies depending on factors like age, health, and location. However, most people will find these plans to be far cheaper than long term insurance options. The trade off is that you might end up paying more if you need more extensive care, as short-term plans have higher deductibles and don’t cover as much.
Think of it like buying a cheap pair of shoes they’ll work for a while, but they might not hold up if you need them for the long haul. Short term health insurance can work for a few months, but if you need something more comprehensive, you might want to start looking into longer term options.
Top Providers of Short Term Health Insurance
There are several well known providers in the short-term health insurance space. Some of the top names include:
- UnitedHealthcare: Known for a variety of health plans, UnitedHealthcare offers flexible short-term options that can be customized to your needs.
- Cigna: Another big name in health insurance, Cigna offers both short-term and temporary medical plans that provide coverage during gaps.
- Aetna: Aetna’s short term plans come with competitive prices and good emergency care options.
- Progressive: While better known for car insurance, Progressive also offers short term health insurance plans.
These providers offer different plans, so make sure to compare them based on your health needs and budget.
FAQs About Short Term Health Insurance
What does short-term insurance cover?
Short-term plans mainly cover emergencies, hospital visits, and urgent care. They generally don’t cover regular doctor visits, prescriptions, or preventive care.
Can I cancel short-term insurance at any time?
Yes, short-term insurance can usually be canceled whenever you choose. However, make sure you understand the terms of your plan before making any decisions.
Is short-term health insurance a good idea?
It depends on your situation. If you’re only looking for temporary coverage, short-term health insurance can be a good option. But if you need something more permanent, a regular health plan might be better.
Why is short-term health insurance cheaper than traditional plans?
Short-term health insurance is cheaper because it offers less coverage. Traditional plans cover a wide range of health services, while short-term plans focus mostly on emergencies.
Where to Buy Short Term Health Insurance
You can buy short-term health insurance directly from providers like UnitedHealthcare or Cigna, or use online comparison tools to find the best options for your needs. It’s always a good idea to compare a few different plans before making a final decision.
Conclusion
In short, short term health insurance is a cost effective way to fill in the gaps when you need temporary coverage. But, like anything else, it has its downsides. Before you sign up for a short-term plan, make sure you understand what it covers and whether it fits your needs. If you’re just looking for something to tide you over until your next big health plan kicks in, it could be the perfect solution.