Short-term health insurance plans are designed to provide coverage for emergency and unexpected illnesses, but are not intended to be a permanent solution for healthcare coverage needs. It is important to be aware that short-term health insurance is not compliant with the Affordable Care Act (ACA), meaning that it will not cover pre-existing conditions or include other comprehensive benefits. Additionally, temporary health insurance is not guaranteed issue, which means that applicants may be asked questions about their health history and could potentially be denied coverage based on their answers.
Who Should Consider Short-Term Health Insurance?
Temporary medical insurance is ideal for people who:
- Need affordable health insurance for a short period of time.
- Need temporary health insurance for unemployed periods of time.
- Need to buy health insurance when leaving one job and starting a new one.
- Are seasonal employees who need temporary health insurance.
- Are college students who aged out of a parent’s policy.
- Retired early and need coverage until their Medicare benefits begin.
- Missed the Open Enrollment Period (OEP) and don’t qualify for a Special Enrollment Period (SEP).
- Cannot afford, or do not want to purchase, COBRA insurance
How Do You Apply for Short-Term Health Insurance?
Short-term health insurance plans can be a viable option for those seeking medical coverage for a limited period of time. Typically, only 12 months, These plans are easy to apply for and feature affordable premiums. However, it is important to note that deductibles and other out-of-pocket expenses associated with short-term plans are often more expensive than those associated with comprehensive ACA health plans.
Upon submitting an application, an individual’s medical history is assessed. If approved, benefits can commence within 24 hours. The coverage period is adjustable, with plans beginning at one month. Depending on the plans available in the applicant’s area and state regulations, they may be able to purchase consecutive plans or apply for coverage up to 3 years. However, the length of time an individual is allowed to have short-term coverage may be restricted based on their location, as states may impose their own limitations on these plans.