According to recent survey data, about 30 million people are uninsured or underinsured in the United States. The average high cost of health insurance, insufficient employer-sponsored coverage, job loss, ineligibility for public programs, and pre-existing conditions are common factors for the high number. As a result, short-term health insurance has grown in popularity in recent years. It is an option for individuals and families who are experiencing a gap in their health coverage due to a life transition and seeking a more affordable alternative to standard health insurance. Also, short-term health insurance may be a good idea for you if you are:
- Missed an open enrollment to apply for the Affordable Care Act (ACA)
- Looking for coverage to bridge you to Medicare
- Turning 26 and coming off your parent’s insurance
- In between jobs and waiting for employer-sponsored coverage
- Healthy and under 65
The Pros of Short-Term Health Insurance
The biggest advantage of short-term health insurance policies is that you may choose the period of coverage. Generally, you may buy a plan on a month-to-month basis. Also, there is an option for a policy renewal for up to 36 months, depending on the state where you live.
Even if a more comprehensive health insurance alternative becomes available, you may drop coverage without penalty.
These plans may offer coverage for doctor visits, hospital stays, and emergency room visits, as well as prescription medication coverage and some preventative care services. The short-term health insurance network will vary widely based on the plan and the insurer.
The application process is typically straightforward, and coverage can begin as soon as the next day.
In general, short-term health insurance policies are less expensive than standard health insurance plans. This makes them an appealing alternative for individuals and families looking to have temporary coverage with lower monthly premiums.
Factors to consider about Temporary Insurance
However, it’s essential to keep in mind that short-term health insurance is not a replacement for standard health coverage. As it may not cover all essential benefits.
- For example, pre-existing conditions, maternity and newborn care, mental health services, or all preventive care and rehabilitation services.
- You can meet difficulties with policy renewal after your short-term plan ends. It’s a case when you have any chronic or ongoing health condition, such as diabetes or heart disease.
- In the event of a serious illness or accident, short-term health insurance coverage may not provide significant financial protection for patients.
Ultimately, short-term health insurance can be a realistic alternative for people who seek temporary coverage for different reasons. It provides flexibility, affordability, and quicker enrollment. But it is critical to thoroughly analyze the advantages and downsides and ensure that it is the right approach for your circumstances. A standard health insurance plan may still be a better option for people with pre-existing diseases or who require long-term coverage. Thus, it is crucial to carefully evaluate one’s individual needs and situation before deciding whether to opt for a short-term plan.
That’s why at Baker Consulting we strive to find for our clients the best available health insurance alternatives. We understand that your individual needs might be unique, which is why we offer a range of supplemental insurance plans to ensure you will have comprehensive coverage. These include wellness insurance plans to help cover preventive care, dental insurance plans to help offset the costs of dental care and treatment, and vision insurance plans to help reduce the cost of major vision-related treatments and maintain good eye health.
Contact our licensed insurance broker to make an educated decision regarding your healthcare coverage.