Though short-term health insurance plans have become very popular in last three years they are not for everyone. They can work well for one person and be a completely wrong choice for another. For example, short-term medicals are not recommended for people with poor health or certain chronic conditions because they won’t get sufficient coverage by this kind of insurance. However, short-term medical plans can be a reasonable solution for many people in need of temporary health coverage while going through some of life’s transitions.
Since the health law took effect, short-term health insurance plans have become very popular, especially among young adults, people who have a gap in employer insurance or those who have missed open enrolment under the Affordable Care Act.
Since the health law took effect, short-term health insurance plans have become very popular, especially among young adults, people who have a gap in employer insurance or those who have missed open enrolment under the Affordable Care Act. There are a few major reasons why this plans are appealing:
- They cost much less than major medical plans.
- They can be purchased at any time during the year to provide temporary coverage while you are waiting for an employer or government sponsored insurance.
- They start almost immediately.
- They provide access to broader network of health service providers including many major medical centers.
- Often they are more flexible than ACA-compliant health plans..
- Other advantages of short term plans you can find at 1HealthInsurance.org.
But you should clearly understand that short-term health insurance is not for everyone. It can work well for one person and be a completely wrong choice for another. It is not recommended for people with poor health or certain chronic conditions because they won’t get sufficient coverage by short-term medical insurance. Also, people who have had serious health problems in the past two years shall look for other types of health insurance because pre-existing conditions are not covered by term policies.
Young adults no longer covered through their parents’ plan: Though the federal health care reform law allows children to be covered as a dependent up to their 26, some day children must be removed from their parents’ plans. If you are no longer covered through your parents’ insurance and still don’t have a permanent job, short-term insurance may serve you well, especially if you are healthy enough.
Recent college graduates: A lot of college students find themselves without a medical coverage after graduation. If you were insured under a university plan or under your parents’ one, you are no longer eligible for them after leaving a college. You may fill this gap in coverage with short-term insurance until benefits begin with your first full-time job.
People between jobs: When you leave your job, you also lose your employer-sponsored health benefits. Many people find it too expensive to continue their employer-sponsored plan through COBRA. A short-term plan may be a good alternative for medical coverage while you are looking for new job.
Part-time or temporary workers: If you work on a part-time, seasonal or temporary job you are typically not eligible for employer health benefits, while private ACA-compliant plans can be too expensive for you. In this case short-term medical may give you reasonable coverage.
Early retirees too young for Medicare: Individuals who have retired before the age of 65, may be faced with a gap in coverage before their Medicare begins. You can consider a short-term insurance as a suitable solution until your Medicare coverage starts.
Recent U.S. immigrants: If you have recently become a U.S. citizen, you may have a waiting period before becoming eligible to get a government-sponsored health plans. Short-term medical insurance can be a good option for you to have U.S. coverage.