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Short term health insurance may be a wise choice for recent college
graduates or others who will be uninsured for a short time. Although
temporary health insurance plans won't be a permanent solution to
your health care needs, they will ensure continuity of coverage.
What is Short Term Health Insurance?
Temporary health insurance plans cover you for a short period, usually from one to six months.
A few providers extend their coverage up to 12 months. These plans
are great for people who end up "between" insurance plans. For
example, a recent college graduate may no longer be covered by
his or her parents' policy and may not have a job offering benefits
yet. Since having no coverage can mean delaying necessary treatments
or incurring expensive medical bills, a short term health insurance
plan would provide coverage until the individual can get long-term
coverage through an employer or a private plan.
Does Everyone Qualify for Temporary Health Insurance?
To qualify for most
short-term health insurance programs, you need to be in fairly
good health and be under 65 years of age. For some plans, coverage
can be extended to dependents under the age of 19, or under 25
for dependents who are full-time students.
Temporary health insurance usually does not cover pre-existing
conditions. Each state defines pre-existing conditions differently,
but most describe it as any illness or health problem that you
have been diagnosed with during the last 3 to 5 years. You can
learn more about your health insurance rights, including your
state's definition of pre-existing conditions, by visiting Health
Insurance Info (www.healthinsuranceinfo.net).
Can Short-term Health Insurance be extended?
In general, temporary health insurance plans end after the specified
policy period. Normally, these plans can not be renewed, and
you'll need to find health insurance coverage through a long-term
plan. Most temporary health insurance providers also provide
long-term plans. You can learn more about long-term health insurance
by reading our articles on "Individual Health Insurance" or
"Health Insurance Coverage."
If you expect to need insurance for longer than six months,
you should consider an individual health insurance plan rather
than a temporary plan.
What Happens if You are Injured or Become Chronically Ill While Covered by Short Term Health Insurance?
Depending on the deductible amount you chose when signing up
for your policy, you may incur some medical costs. For example,
if your deductible is $1000, then your insurance policy won't
start paying any of the costs until after the first $1000 in
expenses. For this reason, it's a good idea to choose a lower
deductible even though it may mean higher premiums. Some policies
may not cover all of your medical expenses either. You may be
expected to pay 20% while the insurance covers the other 80%,
for instance.
Before you choose a policy, you need to ask questions about how
much of your expenses will be covered. Other costs, such as
prescriptions, are typically not covered by your policy either.
Short-term Health Insurance Resources and References
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