Short Term Health Insurance
Short-Term Health Insurance History
an Article by Allison Bell April 10, 2019 ThinkAdvisor Editor
Traditionally, consumers used short-term health insurance to protect themselves while they were between jobs, or when they had just gotten jobs and were not yet eligible for employers' group health plans.
The drafters of the two statutes included in the Affordable Care Act package exempted short-term health insurance from the ACA underwriting, benefits and pricing rules that apply to individual major medical insurance.
Before April 1, 2017, each state could decide for itself how long a short-term health insurance policy could last, or whether an insurer could sell short-term health insurance to its residents.
If the bill took effect as written, it would limit the benefit for short-term health insurance policies to three months. Today, a state can let the same short-term health insurance policy stay in place, with renewals, for up to three years.
Short-Term/Temporary health insurance is a good option if you are just graduating from college, in between jobs, or are waiting for a permanent policy in the underwriting process, or in your waiting period at work before you can access the employer’s group health insurance policy. You may keep a short-term policy on a month to month basis for up to one year in most cases.
You should not go without health insurance for even one day if you care
about your finances and your health.
Things you should know about short-term health insurance policies:
They do not cover pre-existing conditions. You may not get coverage for your visits to the doctor for your high blood pressure with this type of policy but you will be protected if you have a big hospitalization bill for a fall or sudden illness which can set you back you thousands of dollars.
They do not cover most preventive/wellness care. These plans are designed to cover you in case of a catastrophic illness or injury, not to cover all of the smaller expenses.
In most cases, I can have a plan in place by 12:01 am the next day after submitting an application.
Most plans only offer coverage after you pay your selected deductible, then you will be responsible for paying a percentage of the bill until your out-of-pocket maximum is met. You will receive discounted rates for services received before you deductible is met for using in-network providers. I also now have short-term plans which have co-pays for sick/injury doctor’s office visits.
If you find yourself in a position to need short-term health coverage, please feel free to give me a call at 727-207-3103 and I will find you the best option at an affordable price.