As job losses in the United States has risen to new heights, so too has the number of citizens turning to short term health insurance. For most Americans, being without health insurance simply isn’t possible, which makes short term insurance a way to affordably retain some level of coverage.
Workers who have recently taken on jobs at new employers are still sometimes faced with probationary periods that they must pass before gaining eligibility for company benefits. These periods can last from 30-90 days, and a good number of medical emergencies could arise in that time. Temporary insurance provides protection for accidents and emergencies during these windows of time.
As you consider short term coverage, be aware that it does have some limitations. Checkups for general wellness and preventative care are not available in short term medical insurance policies. These programs are simply intended to cover unforeseen medical events.
Pre-existing conditions are also not covered. Keep this in mind as you apply for coverage, both so that you know what to expect going in and also so that you can answer the application honestly. Temporary insurance policies typically have a number of requirements and limiting factors, so you’ll want to pay very careful attention to all the accompanying terms and conditions.
As you decide what level of short term medical insurance plan coverage you’ll need, think first about how long you’ll need it. It’s usually available in durations anywhere from 1-6 months, but you can also extend some policies to 12 months. Your plan administrator can offer more information. Also consider what sort of deductible you’d like to have in place, as that factor can be altered to suit your needs as well.
Often times, people who’ve recently left their jobs don’t consider short term medical coverage because they’re eligible for COBRA coverage. They may be missing an opportunity though, as COBRA has several drawbacks that may outweigh its convenience.
Although a former employee can keep their old insurance plan for as long as’ months after termination, that convenience can prove to be pricey. As much as 100% of the resulting premiums may need to be paid, and there are usually expensive administrative fees added onto the bill. Up to 84% of a family’s average unemployment benefits may be used on COBRA premiums, according to the nonprofit group Families USA.
In that case, short term insurance may be a better option. To see if short term medical insurance is right for you, contact your former or pending insurance representative, or search for additional information online. Discuss your unique situation and needs, and find the temporary insurance solution that is right for you.
Ray Sondeo often writes about short term insurance.