Short term health insurance
In case if you are between jobs or are awaiting another health insurance policy to come into effect you may find that you have a gap in your health insurance coverage. There is no denying that this period is a high risk as you are effectively uninsured when it comes to health insurance. The question now arises: So what are you to do in this interim period Well if experts are to be believed, one of the best options in such situations is to consider taking out a short-term health insurance policy. It is worth pointing that this will cover you for a limited or fixed term.
In an ideal scenario, short-term health insurance policies last for periods of less than six months. Furthermore, there are policies that will cover you for up to twelve months also however. In case if you need coverage for periods longer than this, you should probably be considering standard individual or family health insurance plans.
Application is Simple
Theoretically speaking one of the benefits of short-term health insurance is that the application process is somewhat more straightforward. As a matter of fact these policies are really designed to cover unforeseen accidents and other emergency situations and are not recommended for comprehensive health protection. Because of this simple reason they will therefore generally not cover such advanced features as preventive treatments, physical and diagnostic tests, immunizations, dental and vision expenses which you should try to avoid for the period under which you are covered by the short term plan.
According to experts, the main concern, and something you should be aware of if you are considering a short term plan is that they will make you ineligible for guaranteed issue health plans. In simple terms, these plans are most commonly referred to as HIPAA plans. Fact remains that they can be very expensive and are used in cases where the insured has existing medical conditions, which would otherwise make it very difficult for you to obtain health insurance. Moreover, if you think you will need eligibility for a HIPAA plan, you should not purchase short-term health insurance. It is worth pointing that the Health Insurance Portability and Accountability Act or HIPAA, and state health insurance rights are important protections and you should seek advice from a benefits advisor in these regards.
Are you covered
There is no denying that short-term health insurance plans will not cover existing medical conditions. Theoretically speaking, while the exact definition depends on your circumstances and on state laws, what this means is that if you have been diagnosed in the last three to five years or have been receiving treatment for a condition, it will be a pre-existing condition and you will not get coverage for it under your short term plan. Thats why, if this applies to you, it is recommended that you extend your current comprehensive policy rather than switch to a short-term plan.
It is worth mentioning in this regard that you could find yourself without health insurance cover in situations like changing jobs, choosing a new long-term insurance plan or waiting for a group insurance policy to become effective. If experts are to be believed, short-term health insurance is meant to protect you during such breaks. Furthermore, this coverage can also include your spouse and children. As a matter of fact such policies are normally issued for one to six months. Always remember that they usually cannot be renewed, but most insurance companies allow you to apply for a similar policy when the existing one expires.
In theory, coverage becomes effective within 24 hours of submitting the application. Though, always remember that you can defer the effective date of the policy up to 30 days. Furthermore, the application is an easier process than that of a standard insurance policy. However some insurance companies charge a processing fee of $25.
Fact remains that there are certain contingencies that short-term health insurance does not cover. It is worth pointing that these include per-existing medical conditions (medical problems that have been diagnosed and treated during the previous three to five years), dental and vision care, immunizations, medical check ups and preventive care. Apart from these, however specific policies may vary, a short-term policy would normally offer the same coverage as regular policies. It is worth mentioning in this regard that the maximum pay out by the insurance companies in short-term policies is likely to be fairly high.
As the policy is for a short term, you could choose for a higher deductible and reduce the premium. Theoretically speaking deductible means the amount you must pay to meet your medical bills. In addition the insurance company will pay all expenses beyond that.
In case if you are not sure how long you will require coverage, it is better to opt for monthly premium payments. Otherwise, it is pivotal to choose to make one payment up front, and the cost will be less.
Always remember that a short-term policy is only a temporary measure and not a substitute for regular health insurance cover. Therefore once your long-term policy becomes effective, contact your insurance company and cancel the short-term policy.
There is no denying that an affordable temporary health insurance plan is a perfect solution for a person especially when he/she is in need of a short-term medical insurance policy. As is pretty much evident with the name, these policies are affordable and temporary. Furthermore, small cost, fast purchase process and high coverage amounts are the merits of this health insurance facility. In addition some plans now offer coverage for up to 36 months, most temporary health insurance plans offer services for periods as short as 1 month or up to 12 months.
Fact remains that it assures short term medical coverage needed to pay for unforeseen illnesses and injuries. Albeit with sub-limits and special conditions, majority of affordable health policy services include surgery, hospital care, emergency services, diagnostic tests, prescription drugs, follow-up office visits, and even limited mental health. Since affordable, always remember that this plan coverage does not finance preventative care such as physical exams, immunizations, and PAP tests.
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