temporary health insurance" /> Temporary health insurance provides temporary medical coverage in some situations. Many of its features differ from standard health plans. So what is temporary health insurance and is suitable for you?
What is temporary health insurance?
This type of coverage provides temporary medical coverage when outside enrollment periods, between health plans, and needs coverage in case of emergencies.
What does temporary health insurance cover?
Its coverage varies greatly depending on the insurance company and the plan you buy. They do not have to conform to Affordable Care Act (ACA) guidelines. They provide minimum essential coverage for doctor visits, preventive care, emergency care, and urgent care. Some may cover for prescription or offer cost-saving solutions to seeing in-network providers. One should read the limitations and exclusions information before purchasing a plan.
What is the cost of temporary health insurance?
The typical cost of temporary health insurance includes:
Deductibles: These can be significantly higher than the standard health plan. You will pay out of pocket before you meet your deductible. Afterward, your plan starts to share the cost.
Premium: One pays for the premiums every month. The cost varies depending on the level of coverage, including coinsurance and deductibles and the type of service covered.
Copay: You may have to pay this fee when you visit a doctor. Some insurers require you to pay a copay for certain medical visits.
Coinsurance: You will share a certain percentage of the cost with your plan once you meet your deductible. It is shown in percentage.
Out-of-pocket costs: You will have to shoulder the entire cost of a service not covered by your short-term plan. For instance, some short-term plans may not cover or limit the coverage for substance or mental health, vision care, dental care, and maternity care leading to high out-of-pocket costs.
How to shop for a temporary health plan.
Check if your state allows for temporary health plans: Some states do not allow short-term health plans. In addition, buying or renewing a plan and the duration depends on the choice of plan and states law.
Compare the cost:
- Look at plans side by side, including exclusions, coverage premiums, out-of-pocket, and deductibles.
- Familiarize yourself with health insurance terminologies before comparing plans.
- Consider how the short-term plan reckons out-of-pocket cost.
Understand any benefit cap that applies to your plan, including limitations on the number of medical visits and the amount the plan pays.
Read the exclusions: Does the plan cover prescription drugs for inpatient or outpatient services? Does it cover maternity care, and are there limitations on visits?
Plan for termination: Termination of a short-term plan does not trigger a special enrollment for ACA. You need to terminate your enrollment during open enrollment if you are considering this kind of transition.
Although these plans are allowed in most states, they are only meant for people with health insurance gaps. They are cheap than the standard health insurance but have limited benefits. Again, a short-term plan can reject a person or exclude their pre-existing conditions.
Consider the pros and cons of temporary health insurance before choosing a plan.
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