What is a Short Term Health Insurance Plan
Ashort term health insurance planis also known as temporary health insurance plans. They provide a limited but affordable coverage option for bridging gaps in your health care coverage. Ashort term health insurance planmay prove useful in the following situations when…
- Switching between jobs
- Awaiting eligibility for
- Medicare coverage
- Switching from one coverage to another
- You do not have any active health insurance coverage
When you are stuck in any of the situations listed above, ashort term health insurance planwould be your best bet.
Advantages of a short term health insurance plan
Savings on health insurance: The most obvious benefit of ashort-term health insurance planis the affordability. Short term coverage cost much less than regular coverage while providing the same cover, albeit for a short period. The current cap for all short term health insurance plans is 90 days. However, this may change by October 2018. Furthermore, you could buy a second plan after the expiry of the first one.
Immediate coverage: Health insurance policies could take a while to process. This makes ashort term health insurance plana useful stopgap between transitions. As long as you are healthy, you can secure an individual and family coverage under 48 hours. You could even make a single payment if you already have a coverage duration in mind.
Flexible plans: Contrary to what many think, a short term health insurance plan does not limit your health insurance options. The plans cover diverse physician services, including surgeries as well as inpatient and outpatient care. You may even choose your own hospital or physician, depending on your insurer’s policies.
Limitations
Ashort term health insurance plandoes not provide coverage for pre-existing conditions. This makes it far from ideal for people suffering from chronic conditions.
They do not provide the complete coverage that comes with ACA-compliant health insurance plans.
You may not be able to purchase a regular plan if your short-term coverage ends outside of the open enrollment period.
You could also face a tax penalty if your case does not fall under any of the stipulated exemptions.
Remember, the purpose of ashort term health insurance planis to help you fill any gap in coverage. Admittedly, the new legislation would allow you to purchase ashort term health insurance planfor a considerably longer period of time. However, you should never use it as a substitute for a regular health insurance plan.
For more information please call Unifiedhealthmarket.com today at(800) 674-9103
