With unemployment and economic instability still prevalent in most sectors of the American economy, medical insurance options seem to be narrowing for those without jobs. short term medical insurance can neatly fill the gap, and can substitute the more expensive COBRA insurance in most cases.
You might have heard the term COBRA insurance being bandied about at your workplace. It is essentially coverage that commences after a person loses his/her employment, so that coverage is continuous. But then, you might not be aware that COBRA coverage is often more expensive, and that you may not automatically qualify for it. In this scenario, temporary insurance provides a viable alternative.
Your short term insurance plan is also called temporary insurance, and offers typical short term benefits: primarily unexpected medical illnesses. A range of benefits including physician consults, hospitalization, prescriptions, diagnostic exams, ambulance services, and emergency care are usually part of the short term health insurance plan. As short term benefits usually go, you will not be covered for previously existing conditions and pregnancy.
You can usually purchase temporary insurance for periods ranging from a month to a year. Remember that some plans may consider each renewal a new policy, which means that the premium rates may have changed, and also your eligibility in terms of pre-existing conditions. You will find that the process of renewal is actually very simple and easy.
While a person can use short term health insurance to tide over an otherwise uninsured period in life, temporary insurance cannot substitute long-term insurance, which provides full permanent medical coverage, including routine check-ups, pregnancy, and other medical conditions.
When getting back on a regular long-term health plan, short-term medical insurance can often be counted toward creditable coverage for group plans. Labeling an insurance plan as creditable coverage means that the plan counts as equivalent coverage when determining pre-existing conditions and effective continuous period of coverage. Short-term medical insurance plans are usually not considered creditable coverage for individual plans.
A short term health insurance is also easier to get into, since there are not many underwriting procedures, unlike COBRA insurance. It can also be done online via a few clicks of the mouse.
If you are considering short term medical insurance, ensure that you want it as temporary insurance. It’s best if you are looking at purchasing short term medical insurance for six months or less. It also works well as an alternative to COBRA insurance, and can help you tide over uncertain periods in life.
Dan Miller often writes about short term insurance.
Tags: family, finance, general insurance, health, health insurance, insurance, medical, temporary insurance