Understanding Short Term Medical Insurance

There are basically two types of insurances: short term and long term. Just as the name implies, short term insurances are made for special situations that fall outside of long term. Short term insurances can cover a variety of situations such as health, life, property, and auto. Short term medical insurance is generally designed to cover emergency medical expenses and does not cover preventative care, pregnancy care, dental care or vision care. It does not also cover pre-existing conditions.

Understanding Short Term Medical Insurance
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Short term insurance is designed to provide coverage for a brief time or in cases where there is a gap in an existing insurance or until a permanent plan becomes effective. Situations that usually call for a short-term insurance include people changing jobs and losing their coverage for a while, individuals who no longer qualify under their parents’ insurance plan, or students needing coverage while attending school. Short term medical insurance rates vary greatly, and is dependent on factors such as age, length of coverage term, health conditions, and the type of coverage,

Short term medical insurance is best for:

  • Employees who are newly hired; it can take one to six months to become eligible for your company’s group health plan
  • Recent U.S. immigrants; there is a waiting period before being able to receive Medicare or other government-sponsored health plans
  • U.S. citizens returning from living abroad

Short-term health insurance is an option for people who do not need coverage for a long period. It can be purchased for a term of one day to one month, and renewed at the end of every month, but never more than 12 months. Coverage starts once your application is approved and premium payment is made.

Benefits of a Short Term Medical Insurance

  • Ideal for individuals and their families who do not need insurance for any pre-existing medical conditions
  • No initial exam is required in order to obtain coverage
  • Although rates vary, it usually has a low monthly premium
  • Provides for emergency medical care coverage when no other health insurance is available
  • Flexible, with several benefits that include length of coverage and a choice of deductibles
  • Quick; coverage usually commences 24 hours from the date of application

Drawbacks to a Short term Medical Insurance

  • Does not generally cover routine doctor visits
  • Does not usually cover anything that is related to a pre-existing condition, even if an emergency arises
  • Unlike a conventional health policy, which provides continuous coverage as long as premium payments were made, short-term health insurance is not part of the Health Insurance Portability and Accountability Act of 1996, (which states that health insurance policies must be renewable). This means that if you get a serious disease while covered under a short-term health policy, you may have trouble obtaining health insurance later.
  • A short-term health policy may be cancelled by your provider, after which, it may be difficult to find coverage elsewhere after diagnosis of a major health condition.

A short term medical insurance policy may not be a permanent solution and may not provide suitable coverage for all people, but it can be useful service for people who only need temporary coverage.

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