As job losses in the United States has risen to new heights, so too has the number of citizens turning to short term medical insurance. For most Americans, being without health insurance simply isn’t plausible, which makes short term health insurance a way to affordably retain some level of coverage.
Temporary insurance is not only for people who have recently lost their jobs, but also for those who have recently switched jobs and are waiting to complete their probationary periods. Many employers still have 30-90 day periods under which new hires are not covered by insurance. In these circumstances, short term medical insurance provides a valuable safeguard against illness and injuries.
As you consider short term coverage, be aware that it does have some limitations. Checkups for general wellness and preventative care are not available in short term health insurance policies. These programs are simply intended to cover unforeseen medical events.
This means that pre-existing conditions are also not covered. Be certain to report all of these when filling out your short term coverage application and pay careful attention to any limitations found in the plan’s policies.
As you decide what level of short term health insurance plan coverage you’ll need, think first about how long you’ll need it. It’s usually available in durations anywhere from 1-6 months, but you can also extend some policies to 12 months. Your plan administrator can offer more information. Also consider what sort of deductible you’d like to have in place, as that factor can be altered to suit your needs as well.
Often times, people who’ve recently left their jobs don’t consider short term medical coverage because they’re eligible for COBRA coverage. They may be missing an opportunity though, as COBRA has several drawbacks that may outweigh its convenience.
COBRA allows a terminated employee to retain health insurance coverage through their former employer’s provider for up to 18 months. COBRA coverage can be applied to your family members as well. While this seems like a great benefit, it’s an expensive, one, with the user often having to pay 100% of premiums as well as administrative fees. The nonprofit group Families USA reports that COBRA costs can consume up to 84% of average monthly unemployment wages.
That’s a perfect example of an instance in which short term medical insurance makes more fiscal sense. You can decide if health insurance short term is your family’s best option by searching for more information online or consulting your current insurance representative. After reviewing your specific situation and what corresponding levels of coverage you require, the right plan can be found for you.
