National Insurance Direct

What Is Short Term Health Insurance and What Does It Cover?

What is short term health insurance and what does it cover? Short term health insurance is also known as “temporary health insurance” to “bridge the gap”

28 million Americans are uninsured during the COVID-19 epidemic. Are you one of them? Then it may be because you don’t know your options when it comes to temporary insurance. 

Short term health insurance can help individuals who lost their insurance plan due to an employer going out of business or early retirement. Yet, you may be wondering: what is short term health insurance and what does it cover?

Today, we want to shed light on this little-known insurance option for people who need coverage now. 

Are you looking for a low-cost and flexible health insurance plan to keep you covered if disaster strikes? Then search no further than temporary health insurance. Keep reading for everything you need to know about this convenient plan. 

What Is Short Term Health Insurance and What Does It Cover?

Short term health insurance is a limited duration plan that gives individuals coverage when they can’t or don’t want to enroll in a public or private plan. These plans only last up to a year. They usually offer re-application for up to three years. 

The most attractive elements of a limited duration plan are that they’re cheaper and far more flexible.

The average short term plan costs $107 per month in premiums. That means you can save 80% on insurance premiums compared to $477 per month for regular insurance. 

Short term plans also allow enrollment at any time of the year. Coverage begins anywhere from 1 to 14 days after applying whereas regular insurance can take up to 6 weeks to kick in. 

Another pro to getting short term health insurance is that you can choose the benefits you really need. That way, you aren’t paying extra for services you know you won’t utilize.

Benefits Covered Under Temporary Health Insurance Plans

Because short term insurance is temporary, providers aren’t required to offer minimum benefits. Minimum benefits are those required for any ACA-approved insurance plan and include:

  • Ambulatory services
  • Emergency care
  • Preventative care
  • Hospitalizations
  • Lab services
  • Maternity and NICU
  • Mental health services
  • Rehabilitation
  • Pediatric services
  • Prescriptions

Short term plans don’t always cover these 10 benefits. That way, you can get the coverage you really need for a low price. Besides, what these plans do cover is more important than what they don’t cover. 

Doctor visits and hospitalizations are always covered under short-term plans. These plans also cover in-hospital drugs, though not retail prescription purchases. If you want more benefits for an extra price, your insurance provider can go over your options.

While you won’t have to hit a high deductible before insurance pays out, there is a max dollar amount the plan will cover before it drops out. 

Also, keep in mind that short-term insurance doesn’t typically cover individuals with pre-existing conditions.

Who Needs Short Term Health Insurance?

Short term health insurance isn’t for everyone.

If you have a pre-existing condition or are unable to pay higher out-of-pocket costs for care, you may want to look elsewhere. But if you want a flexible insurance plan at a low monthly price, this insurance plan is for you.

Here are three more instances where temporary insurance may be the best choice.

You Lost Your Job

Losing a job is hard enough without considering the benefits that go away with it. And if you lose your job after the annual open enrollment period has expired, you may have to go without insurance.

That is unless you choose a short-term insurance plan until you find a new job. Short-term insurance plans allow you to sign up at any time and cancel whenever your new employer’s plan kicks in. 

You Missed Open Enrollment

Open enrollment is a short six-week window that allows you to apply for public insurance for the year. If you missed the deadline, you may qualify for Special Enrollment. However, this could further delay coverage.

Some people may instead prefer to pick a short-term insurance plan that will fill the gap. Short-term insurance is available year-round so you never have to go without health coverage.

You’re an Early Retiree 

Retiring before the age of 65 is a dream for many people. Yet, early retirees often forget to consider that Medicare doesn’t kick in until age 65. If that sounds like you, you may be worried about a gap in coverage while you wait.

The good news is you can supplement your insurance with a short-term plan until you turn 65. Short term insurance policies usually allow you to re-apply up to 3 times. That means you could keep your plan for up to 4 years or until you’re officially retired.

You’re Self-Employed

If you’re self-employed, paying for a private insurance plan is a huge cost burden. Yet not qualifying for Medicaid may have you feeling like there isn’t a plan out there to meet your needs. That’s where short term insurance comes in.

With short term self-employed insurance, you can get immediate coverage for a low monthly premium. Plans offer flexible coverage periods, too, so you can use it for as little or as long as you need.

Get Short Term Medical Insurance Online

So what is short term health insurance and what does it cover? Short term insurance offers a flexible, low-cost way for individuals to get temporary health coverage. It covers doctors’ visits and hospitalizations, with options to add on benefits for an extra charge.

Are you in need of temporary medical coverage after losing your job, retiring early, or something else? National Insurance Direct can help you find the short term plan that fits your needs. Schedule a call today to get a free short term health insurance quote!