A short-term health insurance plan covers the basic medical expenses of an individual for a predetermined short time period. Most of the time it is used by people who already have a long-term policy that came to an end and there is a gap between getting a new policy. Generally, these health insurance plans are more affordable than traditional insurance plans. The good side of these plans is that they can be enrolled all year long and there is no specific enrolment time.
The maximum length of a short-term health insurance policy is 12 months. In fact, some have the possibility of renewal of up to 3 years. All the major health expenses are covered in these plans, but visits to the hospital or annual checkups are not covered. A few conditions apply for these plans like if you or your spouse is pregnant, you don’t qualify for a policy. There are some states that don’t even permit the individuals to have a short term health insurance policy.
When to Buy a Short Term Health Insurance Policy?
If you are having a gap between your two long insurance policies, buying a short term policy is the perfect solution. Also, if you are changing your job or freelancing, you can buy this type of plan to save yourself from unexpected medical expenses it that time.
You might be confused about what to do in case you can’t afford the plans available in the ACA marketplace. Going without an insurance policy and risking it is not the best idea, in fact you can buy a short term policy until you are able to buy one that is reliable. If you get a medical emergency at such time, you can be in debt of thousands of dollars so make the right decision.
This is the time when buying a short-term policy will help you. It will be low-cost and provide coverage for a specific time period, it will allow you to save money and get a new job so that you can buy a long-term policy. It helps the individual by avoiding the burden of expensive medical bills when they can’t afford health insurance.
Rates of Short-Term Health Insurance
The great thing about short term health insurance is that they are very inexpensive. The cost can be as low as $50 per month. But, you must know that the deductibles for such plans are usually higher and must be paid before the policy pursues your medical bills.
There are a few plans that offer complete coverage after you have paid your deductibles. Most of them don’t cover pregnancy care services and services for other pre-existing conditions. Also, the annual visits to your doctor are not covered by such policies. All short term health insurance policies do not follow the Affordable Care Act. If you are waiting for your long-term insurance policy application date, you can get a short one to pass the time without the fear of any emergency medical expenses.