What if you just turned 26 and are now realizing that you are no longer eligible for your parents’ health insurance plan? Or maybe you’re in between jobs. Or maybe you missed the Affordable Care Act (ACA) Open Enrollment Period (OEP).
Whatever your situation is, it puts you in the same position: You either don’t have health insurance or you’re about to lose your coverage and need options quickly.
One popular option is to purchase a short term health insurance plan. Short term health insurance plans may be ideal for situations just like the ones above.
Although short term health insurance doesn’t work for everyone and every situation, it does offer many folks a budget-friendly option for health insurance coverage.
Before you apply for a short term health insurance plan, it’s worth taking a look at some of the pros and cons.
Short term medical insurance may provide coverage for doctor’s office visits, prescriptions, hospital stays and more. Find out more about this healthcare coverage option now.
Short term health insurance coverage can begin quickly
While some types of health insurance have start dates that may be weeks away from when you first signed up for them (for example, an employer health insurance plan that makes you wait 30 days after you start for healthcare coverage to begin), you can get short term health insurance coverage quickly, says Jeff Baechle, Senior Director of Products, Employee & Individual at UnitedHealthcare. Sometimes even the day after you sign up for it.
You get to set your own end date
If you get traditional health insurance, you’re covered on an annual basis, at which time your health insurance plan can be renewed. But short term health insurance plans provide up to 12 months of coverage (less one day), depending on state, which is helpful if your situation is temporary.
“It’s really a bridge to get you to the other side of where you’re going,” says Baechle. “If there’s an unexpected gap, that’s what it fills in.”
You don’t need to have a big life event to get short term health insurance
That's different from the health insurance plans offered under the ACA, which allow you to sign up for insurance only during certain times. These could include:
You may pay less for a short term health insurance plan
Short term health insurance plans often cost less than long-term ones, according to Baechle.
They’re designed to have a low premium (the amount you pay monthly for insurance). But they also tend to have higher deductibles (what you pay before the insurance company starts to pay for covered services) and higher out-of-pocket maximums (the total amount you’d have to pay in one year).
But if you’re in good health and don’t anticipate needing too much medical care while you’re on a short term health insurance plan, it might be your most affordable option.
Your coverage is portable with short term health insurance plans
Many short term plans have broad, nationwide networks, so you have a good chance finding in-network care at pre-negotiated discounted rates wherever you are. And if you’re moving soon, a short term health insurance plan can be a way to take your coverage with you from state to state. That could help fill a gap between major medical policies for a limited period of time until you can apply for a longer-term health insurance plan in your new location.
You may not be covered if you have a preexisting condition
The ACA ensures that even if you have preexisting conditions — for example, a cancer diagnosis — you’ll be covered.
But short term health insurance plans don’t have those protections, says Baechle. That means you’ll need to answer questions related to your medical history and be in reasonably good health to get a health insurance plan.
If you do have a chronic condition that requires frequent treatments, appointments, medications and procedures, then a short term health insurance plan may not be the best choice for you. That’s because, in most cases, short term health insurance plans don’t cover preexisting conditions or the essential health benefits mandated by the Affordable Care Act. You must meet eligibility requirements in order to become insured, which may include medical underwriting.
It all depends on your state’s definition of a preexisting condition, which might mean an illness you received a diagnosis or treatment for within a specified period of time.
You don’t have to wait for the annual ACA Open Enrollment Period to get short term medical insurance. In many cases, you can get healthcare coverage as early as the next day. Find out how.
Your coverage could be limited
Even if you’ve met the deductible, your short term health insurance plan may have a limit. For example, if your policy has a $250,000 cap and the cost of your care goes beyond that amount, you would be responsible for any payments above that.
Another consideration, Baechle adds, is that some procedures or treatments may not be covered, and it’s important to ask what those are. Also, coverage may vary by state.
In general, it helps to know what types of health services you’ll need before you sign up so you can discuss all your coverage options based on your situation and location.
Your risk is greater without insurance
Still, regardless of the up-front costs, keep in mind that not having any health insurance isn’t such a good idea either. Whether you choose a robust ACA health insurance plan or a portable and flexible short term health insurance plan, both are better options than not having any healthcare coverage.
If you do need a temporary solution to fill a gap between major medical policies for a limited period of time, then despite its limitations, a short term health insurance plan may be worth a look
Short term medical insurance may provide limited healthcare coverage for when you are between major medical plans. Explore plans now, or contact a licensed insurance agent at 1-844-211-7730 for more information.
For informational purposes only. This information is compiled by UnitedHealthcare, and/or one of its affiliates, and does not diagnose problems or recommend specific treatment. Services and medical technologies referenced herein may not be covered under your plan. Please consult directly with your primary care physician if you need medical advice.
Compliance code:
53039-X-0226
