Short-term medical insurance can make all the difference when you need health coverage. If you missed the Obamacare Enrollment Period on time, and want to be covered by health insurance while you wait, Short Term health insurance may be right for you.
What is short term health insurance?
When we talk about short-term health insurance or temporary health insurance, we refer to an option available to those who need medical coverage for a certain period of time.
With this type of medical insurance , it is sought that people who do not have coverage can access health services during the so-called “transition time”. Thus, once this period is over, they can decide to take a more complete coverage and with guaranteed issue.
Although this type of insurance has some detractors, Short Term medical insurance in Florida may be the ideal insurance for a person in a given situation.
Remember that temporary medical insurance and ACA insurance are not comparable, as they are designed for different situations.
In what situations is Short Term medical insurance recommended?
Short – term medical insurance can be a great option when you have to go through any of the following events:
- When you are between jobs or waiting for health benefits related to your new job to start.
- A college student, he has recently dropped out of school and his parents’ coverage has been cancelled.
- He is without health insurance.
- If you missed the Open Enrollment Period and do not have a qualifying life event that would qualify you for a Special Enrollment Period .
- Your ACA health coverage has not started.
- You are in good health and under 65 years of age.
- If you are waiting for Medicare.
- For loss of coverage, for example, due to a divorce.
What are the benefits of short-term health insurance?
Short Term health insurance offers flexible and fast medical coverage that allows you to have access to health services while your transition period is over. Among the main advantages, the following can be highlighted, among others:
- You can access coverage quickly, you don’t have to wait to access medical providers and specialists.
- Short-term insurance has a wide variety of deductibles so you can choose the one that best fits your budget.
- You can choose the duration of your insurance coverage, adjusting it to the period you need to cover, which can range from 1 month to 364 days.
- If at a certain point during your short term insurance coverage you want to switch, for example, to more permanent coverage, you can do so without having to pay penalties.
- If you need more coverage at the end of your health plan, you may be able to request more coverage.
- You can get relatively lower premiums than ACA health insurance plans.
What benefits are covered with a Short-Term health insurance and which are not?
Being a temporary insurance, the policies that apply to these Short-Term medical insurance are different from those that can be offered by ACA health insurance. That’s why it’s so important to learn about the coverage of the plan you choose.
The benefits that are contemplated in short-term health insurance are:
- Doctor visits for illnesses and injuries and other outpatient care (outpatient services).
- Emergency services.
- Laboratory services and tests.
Benefits that may be covered or may depend on the type of plan you choose are:
- Mental health and substance use disorder services.
- Prescription drug coverage.
- Rehabilitative and habilitative services and devices.
- Preventive and wellness care.
- Pediatric services (including oral and vision care).
What short-term health insurance does not cover
Keep in mind that Short Term medical insurance does not cover care related to pre-existing illnesses, including pregnancy . This means that if you require care for a pre-existing condition, you will have to cover the full cost of your care.
For example, if you have diabetes or are planning a pregnancy, these types of plans will not cover your expenses. Keep in mind that this history must be reported in a medical questionnaire before purchasing your plan.
Differences between an ACA plan and a Short term
Although, as we said at the beginning, these two ways of obtaining coverage should not be directly compared, since they were created for different situations, there are characteristics of the Short-Term that you should analyze against the ACA coverage.
First, with an ACA Health Plan you may be eligible for tax credits or subsidies in your plan, while a short-term medical plan is not.
Short-term health plans may be less expensive than an ACA plan, but coverage may also be more limited.
An ACA plan guarantees care for pre-existing conditions, while with a short-term plan you will have to cover the full cost.
As you can see, both types of coverage offer benefits depending on your needs and where you are. Our recommendation is that you seek permanent health insurance as soon as possible to improve coverage.
However, if you are going through an event where you need to be insured for a certain period of time, a short-term medical plan may be a suitable option for you.
If you require more information or have questions about how to access these plans and which is the best coverage for your needs and budget, do not hesitate to contact us. We can help you.