How to Buy Temporary Health Insurance

Here's how to make sure your medical expenses are covered while you are waiting for permanent health coverage to become effective.

Difficulty: Easy

Instructions

Things You'll Need:

• Health Insurance

1. Find an agent specializing in health insurance.

2. Calculate the number of days until your permanent group or individual health insurance takes effect.

3. Tell the agent you want a temporary health and accident insurance plan to take effect immediately and cover you for that number of days. If you can afford it, set a high deductible to reduce your premium.

4. Read all coverage information carefully, taking special note of the "exclusions" section - those are the areas where you will have to "self-insure." Be careful not to buy coverage with a list of exclusions so extensive that it doesn't cover much of anything.

5. Sign the paperwork, make sure you get a copy of everything, and give the agent a premium check made out to the insurance company.

6. Check your policy carefully when it arrives to make sure all your personal information is correct and that you are covered during the period for which you applied.

7. Extend your coverage by buying additional temporary insurance if the effective date of your permanent health plan is delayed. Coverage usually ends at midnight on the last day of the term specified, and there is nothing further you have to do after it terminates.

Tips & Warnings

• This type of coverage usually allows you to go to any doctor, clinic, or hospital for treatment.
• If prescriptions are not included in the basic policy but can be added for an additional cost, take the option.
• While the coverage is in effect, carry with you all references to your benefits and important phone numbers at the insurance company.
• Remember to include your spouse and any dependents in the coverage.
• You can usually buy additional days of coverage if you need to extend beyond the period for which you originally applied.
• Keep copies of all treatment receipts, invoices, and billing statements, and submit claims promptly.
• This coverage rarely covers pre-existing conditions, pregnancy or childbirth.
• It's unwise to try to cut costs by choosing coverage with an unknown or low-rated insurance company.
• Agents are compensated well for writing this kind of policy so if the agent you are working with doesn't provide you with excellent service, find another one.
• If you have a claim, the agent who got the coverage for you is unlikely to be able to help you - you'll have to work directly with the insurance company.
• Don't delay making a claim under this coverage as there may be a time limit for reimbursements.
• There is usually a limit on the total amount of continuous temporary coverage you can purchase.

on 8/21/2006 If you are currently insured, an insurance company is required by law to provide an insurance plan. This is true even if they reject you because of preexisting medical conditions.

on 11/22/2005 If you or a family member has an existing health condition, consult with an independent insurance agent prior to changing or purchasing health insurance.

Short term medical insurance plans typically do not cover pre-existing conditions, work related illnesses/injuries, and preventive care.

on 11/22/2005 Covered expenses are subject to your satisfaction of the deductible you selected (usually $250, $500, $1000, $2000 or $5000). After your deductible has been satisfied, the plan pays covered expenses at a certain percentage (usually 80% up to $5000; then 100% thereafter). This is called coinsurance, and you are responsible for the percentage that the plan does not pay. The deductible and your portion of the coinsurance are deducted from benefit payments until they have been fully satisfied.

Be careful of insurance companies that don't prominently and/or fully display coinsurance percentages under 80% and stop-loss limits in excess of $5000.

Example 1: 80% to $10000 coinsurance means you are responsible for $2,000 (20%) plus your deductible, before the plan will pay 100%.

Example 2: 50% to $5000 coinsurance means you are responsible for $2,500 (50%)plus your deductible, before the plan will pay 100%.