Short term health insurance plans are coverage solutions meant to last for short periods before you start using a standard health insurance policy. These plans aren't meant for long periods; they can only be used for 30 days to three months in most states. However, some states offer temporary health insurance plans for up to a year, with an option of renewal for two years afterward.
What do short term plans cover?
Short term plans are simple coverage plans. This means that they don’t offer you the same level of coverage that regular policies do.
Like standard policies, the benefits of short-term health insurance policies differ from policy to policy. Many health insurance companies have temporary health insurance plans with varying benefits. However, these benefits generally include coverage for hospital visits, injuries, emergencies, and other medical situations.
What don’t short terms plans cover?
The biggest con about short-term plans is that they do not cover preexisting conditions. There’s a high chance that your application for a short-term health insurance policy may be denied if you have a preexisting condition. Other services usually aren't offered by short-term plans are treatments for substance abuse, mental illnesses, pregnancy, and outpatient prescription drugs.
These plans don’t have to comply with the guidelines in the Affordable Care Act. So they don’t have the Minimum Essential Coverage that standard plans have. There’s often a lot of fine print when it comes to coverage with short-term policies.
Advantages of short-term plans
- Almost Immediate Coverage: One great thing about short-term plans is that they kick in almost immediately. After you apply, you usually get approved, and your plan begins in one to fourteen days.
- Available Year-round: There’s no enrollment period for short-term health insurance plans. You can apply and get approved anytime, as long as you meet the requirements.
- Different Plans: There are many short-term plans and, consequently, many different benefits. Some packages may cover what others do not. These plans don’t comply with ACA regulations, so temporary health insurance plans may differ significantly from provider to provider.
- Easy Termination: You can terminate your plan whenever you want with no consequences.
- They’re a Fantastic Stop-gap Measure: Short-term plans work well as stop-gap measures for those who can’t enroll for a regular plan.
Disadvantages of short-term plans
- These plans don’t go with ACA standards.
- The period they’re allowed to run is very short.
- The plans don’t cover preexisting conditions.
- Total out-of-pocket costs might be higher in the long run.
- A smaller network of doctors.
- If you buy a short-term plan now, you might not be able to get a COBRA later.
How Much Does a Short Term Plan Cost?
Price is essential when searching for the best temporary health insurance policy. Because of its ungoverned nature, prices may vary wildly here. Temporary health insurance may cost as little as $40, but average prices are usually around $100.
Who should use a short term plan?
Here are people who should use short-term plans:
- Recent graduates.
- People between jobs.
- People who are waiting for their standard new health insurance plan to start.
- People without preexisting conditions.
- Healthy people aged 65 and younger.
- 26-year-olds who just got off their parent’s plan.
A short-term health insurance plan isn't for everyone. However, for some people, it can be an ideal way to stay protected while in transition. If you need any help figuring out which temporary health insurance policies are a good fit for you, contact Fast Health Quotes.
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