When situations call for the loss of a job, the prime thing on most people’s minds is: What will I do for health insurance? Short term health insurance provides a viable solution, with its flexible options. Helping out in times of need, it is truly a friend of those who would otherwise be uninsured.
Best for new graduates, those in between jobs, and those whose employer-sponsored insurance will soon become effective, temporary health insurance offers a great option for the short term. It is also used extensively by part-time employees who don’t have employer-sponsored insurance, and early retirees waiting for Medicare to become effective.
Usually, when one loses his/her job, COBRA insurance is offered as an option. COBRA insurance offers health insurance with long term health benefits, but at a higher rate than employer-sponsored insurance and sometimes, short term health insurance as well. That makes COBRA insurance alternatives a very desirable option.
If you are put off by the lengthy underwriting processes characteristic of long term insurance, temporary health insurance offers just the opposite experience: simple and easy underwriting, with plans becoming valid as early as the next day. If you have any pre-existing conditions, though, they will not get alternatives to COBRA insurance coverage.
Short term insurance covers most sudden medical illnesses and accidents. Plans usually include coverage for outpatient care, hospitalization, diagnostic tests, surgery, and ambulance charges. Doctor visits are also covered by most plans, subject to the applicable deductible and co-pay.
Exclusions of short term health insurance plans are pregnancy, eye and dental care, and any surgery considered elective or experimental. As mentioned earlier, pre-existing conditions are also not covered.
When you opt for short term health insurance, you can choose from a range of plans and options. Not only does the maximum benefit amount differ by plan, applicable deductibles and co-pays can be customized as well. If you are an early retiree, for example, the plan you end up with will be very different than that of a young part-time employee.
When you purchase short term health insurance, you might be tempted to continue on it for a long time. However, it is designed for short periods, and you must ideally not exceed a year or so in short term coverage. If your insurance situation is uncertain, you can renew the plan monthly, for the maximum period specified in the plan.
Dan Miller enjoys writing about short term health insurance
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