How Does Short-term Health Insurance Work?
Other People Are Reading
-
Understanding Short-term Health Insurance
-
Short-term health insurance, also called temporary health insurance, is designed to temporarily meet insurance needs for a person who has a lapse in coverage. A lapse may occur when a person is between jobs, no longer qualifies under their parents' insurance plan or for any other reason.
Length of Coverage
-
A short-term health insurance policy can be purchased for a term of one day to one month. Usually the policy is purchased for one month. The policy must be renewed at the end of every month, if coverage is wanted for a longer term. An insurance company will only insure a person under a short-term health policy for a limited amount of time. Commonly insurance companies, will not allow the policy to run for any longer than a year.
-
What the Policy Covers
-
Generally, a short-term health policy is designed to cover emergency medical expenses. It doesn't cover preventative care, pregnancy care, dental care or vision care. It also does not cover pre-existing conditions.
Getting Short-term Health Coverage
-
Many health insurance companies provide short-term health policies. An insurance broker can assist you in obtaining a policy or one can be found on the Internet. Short-term health coverage starts once your application is approved and your premium payment is made. Often, coverage can be started on the same day of the application. Rates and coverage will depend on the insurer. Policy deductibles and co-payments can vary widely depending on the insurer. Shop around to find the best rates and coverage for your particular situation.
Benefits of a Short-term Health Policy
-
Obtaining initial coverage under a short-term policy is quick and the premiums are usually very cheap. There is no initial exam required in order to obtain coverage. Most importantly, the short-term health policy provides for emergency medical care coverage when no other health insurance is available.
Drawbacks to a Short-term Health Policy
-
A short-term health policy generally does not cover routine doctor visits. So preventative care and treatment for minor health conditions and sicknesses may not be covered. Usually the policy does not cover anything that is related to a pre-existing condition, even if an emergency arises. A short-term health policy is not part of the Health Insurance Portability and Accountability Act of 1996, which states that health insurance policies must be renewable. If a person gets a serious disease, such as cancer while covered under a short-term health policy, she may have trouble obtaining health insurance later. A conventional health policy would have to continue coverage as long as premium payments were made. A short-term health policy can cancel you. After cancellation, it may be difficult to find coverage elsewhere after a diagnosis of a major health condition.
Conclusion
-
A short-term health policy provide a useful service for people who only need temporary coverage. It can be especially useful when obtained while waiting for conventional coverage to take affect. It is not a permanent solution and does not provide suitable coverage for all people.
-
