Short term health insurance

Short term health insurance is intended to provide coverage to individuals who are temporarily without coverage. Someone who has just graduated college and has not yet found employment or someone who has retired earlier than normal would typically be eligible for this short term coverage. Short term insurance typically only lasts for up to six months, so it is not designed for those who need regular coverage. These policies are designed to bridge the gap created when long-term insurance ends. For instance, those who have recently lost employment due to the economy may find that short term coverage is very beneficial until they secure another job position with health insurance benefits.

While most plans are designed to last for up to six months, many can be renewed for a total of 36 months, depending on the insurance provider. If you will need coverage for longer than the typical six to twelve months, standard medical insurance may be a better choice.

A very important fact to consider if you are looking for short term health insurance is that most policies are not designed to cover any pre-existing conditions. Any medical conditions that you may have had during the past 36 months, or the time leading up to your application for short term coverage is typically considered to be pre-existing to most insurance carriers.

The application process for gaining short term insurance is typically easier and much simpler than traditional health insurance coverage. Short term plans are designed to protect consumers from accidents or illnesses that are not expected. They are not designed to provide comprehensive insurance coverage and will typically not include services such as vision and dental care, preventive care and many immunizations. It is also important to note that most insurance companies will not provide short term insurance to anyone over the age of 65 as well as those who have been denied health insurance in the past due to pre-existing medical conditions. In addition, those who are covered by a standard or long term insurance policy will likely not be covered. The application will ask a number of questions about whether or not you are currently covered by a standard health insurance plan. Even if you are approved for short term coverage, carrying double coverage is typically not worth the cost.

Basically, short term health insurance policies give you the freedom to visit any physician that you choose. Although it is important to note that many plans will require pre-certification from the insurance company before you are admitted to a hospital except in emergency situations. Short term plans typically cover basic medical needs such as hospital care, emergency services, surgery, prescription drugs, diagnostic tests and follow-ups with your chosen physician.

The cost of most short term plans is one of the main advantages. Since insurance companies offering short term coverage have the advantage of only providing coverage for a short amount of time, the premiums are typically low. Some policies may require that you pay a deductible for each illness or injury. However, after your deductible has been paid, the policy will pay, on average, 50 to 80 percent of your expenses up to a specified amount. After that amount has been reached, typically $5,000, the policy will begin paying 100 percent of your expenses, up to the maximum amount specified in your policy.

Some insurance carriers offer a discount for paying short term insurance plans upfront. These plans can also be purchased on a monthly payment basis, depending on the insurance carrier. Many major health insurance companies now offer short term medical coverage. Blue Cross/Blue Shield, Aetna, United Healthcare and CIGNA are just a few of the companies that are currently offering this short term coverage.

Last updated on Oct 6th, 2010 and filed under Health Insurance. Both comments and pings are currently closed.

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