Guide to Determine if Short Term Health Insurance is Right for You

Short Term Health Insurance: Who Can Use It?

Temporary health insurance is for anyone under the age of 65 who has never been turned down for health care coverage in the past and who has a gap in their regular insurance benefits. For example, if you are graduating from college and looking for a job then you may be without health insurance for several months. If you lose your job or if you are only working part-time, then you may also be interested in finding affordable temporary health insurance to hold you over.

One of the nice things about temporary health coverage is the cost. The premiums are usually more affordable because the pool of people covered is much healthier than usual. Their good health keeps the medical care costs low and that savings is passed on to you in terms of reduced premiums. You may also want to shop around to find the most affordable short term health insurance available.

Temporary Health Insurance: How Does It Work?

Temporary health insurance plans do vary, but they generally share some similar characteristics. For example, you can usually see any doctor you choose but you will need to be pre-certified by the insurance company before you are hospitalized. The only exception would be in the case of an emergency.

Different short term health plans cover different things. Most do provide some level of benefit for surgery, hospital stays, emergencies, prescriptions, etc. The only types of treatments not covered are routine and preventative care, such as immunizations. You should always check with your insurance provider if you're not sure what is going to be covered.

You should also be aware that temporary health insurance does not cover pre-existing conditions which helps keep the costs low. The question of what counts as a pre-existing condition does vary from state to state but usually goes back about 36 months.

Temporary Health Coverage: Is it Renewable?

Most short term health plans initially only last for 6 to 12 months. In many cases that's sufficient. However, if you find that you need to extend your current policies most will allow you to renew the policy for up to 3 years. However, you are not guaranteed renewal.

Some insurance providers will refuse to renew your policy if you've filed claims during your current coverage period. Others will renew you but will consider any injuries or illnesses you had covered under the original policy as pre-existing conditions which will no longer be covered.

While these rules may seem harsh, they are necessary in order to make short term health insurance affordable for the large numbers of people who need it. Remember that this type of medical insurance is only temporary and is not comprehensive but it can help protect your family when you have gaps in your health insurance coverage.