Short term health insurance is simply health insurance that is bought in order to provide insurance coverage for a short amount of time. Most companies offer short term health insurance that last from 30 days up to one year. If you will not have health coverage for a short amount of time, it is a good idea to think about purchasing short term health insurance in case there is a medical emergency or if you unexpectedly get ill. Short term health insurance lets you decide which doctors you want to see, and which hospital you want to go to if necessary for care. A short term health insurance plan will pay for all of the covered medical costs after you have paid your deductible amount and the coinsurance.
An Overview of Short Term Medical Insurance
Short term health insurance is also called temporary health insurance. Short term health insurance provides insurance coverage in case of a major illness or emergency. A short term medical insurance policy covers major hospital, medical and surgery costs, as well as a daily hospital room and board, other hospital expenses once the deductible amount is met as well as any other copayments that are defined in the insurance policy.
Short term health insurance covers a set period of time. How long the short term health insurance policy runs for is determined when it is bought. Some short term health insurance policies require a single payment for the policy, while other types of policies can be paid on a monthly basis. The advantage of a policy that allows you to pay monthly is that you can choose to end the coverage before the expiration date on the policy if you no longer need the short term health insurance coverage.
Reasons for Buying short Term Health Insurance
Short term health insurance is designed to give you health insurance for those periods of time when you do not have other health insurance. One of the major reasons people buy short term health insurance is to make sure they have coverage while they are in between jobs and before the group health insurance from their new job begins. COBRA coverage is available for a limited amount of time through a previous employer, but for many people, the cost of the COBRA payments are just too expensive. For them, a short term health insurance policy is a much more affordable way to make sure they have medical insurance. Recent college graduates are another group who make use of short term health insurance. After graduation they student health insurance runs out, and short term health insurance is a perfect solution to make sure they have medical coverage until the medical coverage from their employer begins. Some group health insurance plans have a waiting period before coverage begins and short term health insurance is a good option to cover this gap. Also, when someone is waiting to find out if they qualify for a group health insurance policy, they will be covered. However, if they are turned down for a permanent health insurance policy, then there is a chance that they will lose their eligibility for short term health insurance.
How Do You Qualify for Short Term Health Insurance?
It is generally very easy and quick to find out if you qualify for short term health insurance. There are 4 main questions you will be asked and depending on your answers, the insurance agent may need to find out more information from you. But, in a nutshell, the insurance company will want to know:
- Do you have other health insurance that will not end before the short term health insurance coverage starts?
- Are you or anyone who will be covered with short term health insurance pregnant?
- Have you been turned down for health insurance before because of health problems?
- Have you been treated for heart problems, stroke, diabetes, cancer, blood problems, alcohol or drug use, or HIV/AIDS?
If you answer yes to any or all of these questions, you may not be eligible for a short term health insurance plan. It is important, however, to answer each question truthfully. If you are going to be without insurance for a short time, it really is a good idea to buy short term health insurance just in case of an emergency.
How Long Does it Take to Get Coverage From a short Term Health Insurance Policy?
Generally, once you are approved for short term health insurance, your coverage will begin in 24 hours. There is not a waiting period for short term health insurance, which there often is for group health insurance plans. Once you have answered the required questions, the company will decide almost immediately whether or not you are eligible for coverage. You do not have to wait for long to get your answer, or your coverage. The process for obtaining a long term health insurance policy takes much more time and goes more in depth about your state of health, and the company will look at many factors in deciding if you qualify for coverage. Sometimes it can take weeks before you find out if you will be covered under a long term policy. A short term health insurance policy is much easier to get, mainly because it is for a set period of time.
There are many reasons why people buy short term health insurance. With the cost of health care rising all the time, it is important to know that you and your family are always covered under a medical insurance plan. You never know when you will get sick or have an emergency that requires a doctor's care or even a trip to the hospital. Those bills can add up quickly, and having a short term health insurance policy is a good idea so that you don't have a mountain of bills to pay off later.
It is important to carefully look over just what is covered in a short term insurance policy. There many be certain things that are not covered. Short term health insurance differs from group or long term health insurance, so it is important to know all of the terms of the policy. With that in mind, you can find short term health insurance that fits your needs for a limited period of time.
Affordable Health Insurance
With the costs of health care rising every day, is there really such a thing as ‘affordable health insurance' anymore? If you do not have health insurance and you fall ill or have an emergency, you often will end up paying much more for medical care than you need to. There is, however, a type of affordable health insurance that you should know about. It may not provide all of the coverage you want, but it is an option.
Why Do You Need Affordable Health Insurance?
As surprising as it sounds, a recent study by the Council for Affordable Health Insurance found that people who do not have health insurance end up paying much more for the health care than people who do have insurance. There were two examples in the study that highlighted this fact.
In one case, a hospital in California charged patients who had no insurance a whopping $5,500 per day. What is shocking is that the same hospital only charged $1,376 a day for people who had health insurance. In another case, a patient had to have a cyst removed from his back. He had to wait for his health insurance to take care of the cost, and because of that, he ended up being charged $74,396 in medical bills.
There are reasons why these high prices exist. The insurance companies actually work together with health care providers to make arrangements for how medical expenses are priced by doctors and hospitals. This ends up making money for both the insurance company and the medical facilities, but it ends up costing the patient. When an insurance company requires that policy holders choose a doctor from their list, this makes sure that the doctors on the list have many patients, and makes money for the insurance company.
One Option for Affordable Health Insurance
If you or a loved one becomes ill or has an emergency, the costs for health care can mount up quickly. It is not always easy to find health insurance that is affordable. There is one option for affordable health insurance that you might want to consider – Catastrophic Health Insurance.
Catastrophic health insurance is one of the few types of affordable health insurance. This is for people who have not had any major health problems in the past and who are in relatively good health. One of the best benefits of catastrophic health insurance is that, in general, the monthly premiums are relatively low. The drawback, however, is that this type of insurance does not cover a wide range of medical expenses. This type of insurance is designed to be used to cover the expenses of a long hospital stay or surgery. It does not cover preventative health care, routine office visits or prescription medicines. The deductible amount is usually around $250, but it is important to carefully read the entire policy because most catastrophic health insurance plans have a limit on how much they will pay for medical expenses. In spite of any drawbacks with this type of medical insurance plan, it is better than not having any type of medical insurance coverage at all.