Short Term Medical Insurance

Written by Norene Anderson
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Short term medical insurance is an option for the millions of workers finding themselves suddenly without income and employer-provided health insurance. This can be devastating on any family budget. It does not take long to have a hospital bill in the thousands of dollars if there is a sudden illness or injury. Unemployed individuals or those unable to afford full coverage can face total financial ruin without some type of intervention.

Individuals such as college students ineligible for coverage on the parent's policy and those between permanent jobs are most likely to need short term medical insurance. This is also an option for those new employees with a waiting period before eligibility to enroll in the company's group plan. Many other circumstances may put an individual in the need for temporary insurance coverage.

Benefits of Short Term Medical Insurance

Short term medical insurance does not offer extensive coverage like a regular group or individual policy offers. The basic charges are covered for accidents and sudden illness. This is a great way to protect the family's financial structure during a time of transition. Some policies require co-payments and there are limits to the total benefits.

Most policies allow the use of your choice in physicians and healthcare facilities. Generally, all typical hospital charges are covered including intensive care and ambulance service. Some of the things short term medical insurance usually will not cover include pre-existing conditions, routine care, dental, pregnancy, and any medical expense deemed medically unnecessary by the provider.

Choose the Length of Policy

There is usually a time limit to this type of policy for 30 to 180 days. Some plans offer coverage for up to 12 months. It is usually possible to obtain coverage effective immediately. A higher deductible will result in lower monthly payments. This is a good option if everyone on the policy is generally in good health. The option in many plans of prescription coverage will also have an effect on the premium.

The answer to the high cost of COBRA is to find a short term medical insurance policy to fill in the gap. Whether you are a temporary employee, self-employed, or changing career paths, you need continual medical coverage. Some policies are designed with dental and vision care. Other coverage that may be included is chiropractic care. The eligibility for this type of insurance coverage ends at the age of 65 when eligibility for Medicare takes over.

Cost of Short Term Medical Insurance

One of the many benefits offered by employers is health care coverage. This is a real economical issue and many families are uninsured due to the high cost if not employed where this is a benefit. Depending on the employer to pay a large portion of the cost of health insurance comes into focus when that coverage is lost because of job loss or a career change. During the interim, it is imperative to continue coverage with a short term medical insurance policy.

If you are currently covered by a group plan and you lose that coverage, it is important to find a health insurance policy to keep you covered to maintain coverage eligibility. Once you are without coverage, it is harder to get into another policy without the hassle of dealing with pre-existing conditions.


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