Comments on: How to Buy Temporary Health Insurance

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%.