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. temporary insurance can neatly fill the gap, and can substitute the more expensive COBRA insurance in most cases.
COBRA insurance guarantees continuation of medical coverage for up to 18 months after a person loses his/her job. COBRA insurance, however, is more expensive than regular insurance, and the conditions for qualification are stringent. In this tough situation, short-term medical insurance can really help a family by providing much-needed medical coverage.
Short-term medical insurance works as temporary insurance, and covers most unplanned medical conditions. Inpatient and outpatient care, prescriptions, diagnostics, and emergency services are all usually covered under short-term medical insurance. However, temporary plans usually exclude pre-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 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.
Short term health insurance can be considered comparable and creditable coverage, especially for group plans. The importance of getting the tag arises in terms of assessing the applicant to see whether he/she has been continuously covered, and also in determining the applicable pre-existing conditions for the plan.
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.
For temporary insurance of around six months (or less), short term insurance can work quite well. It can also be a better option than COBRA insurance for many people, but it is important to know that short term insurance is just that short term.
