Short Term Health Insurance

Short Term Health Insurance Plans are a valuable source of coverage to those who are in need of urgent coverage. Coverage is normally effective upon approval by the next business day. Since most individual and family plans are underwritten, a process that may take up to six weeks, it is advisable to apply for a short term policy since these are usually very reasonable and offer almost instantaneous coverage while you wait upon the underwriting to process.

Short term health insurance claims to be an alternative to COBRA benefits because it costs so much less. Many people compare the two and say there is no way that the temporary insurance plans are legitimate because they cost so much less. The main thing that people need to do when considering a temporary medical policy is contact the state's department of insurance to ask them about the company offering the policies. If it is a reputable company, they will have gone through the approval process to ensure compliance with all the rules and regulations that every insurance plan has to go through.

This insurance coverage is designed as a safety net against enormous medical costs. It generally does not include physical checkups, prescription medication plans, or other types of preventative care needs. Short term insurance gives you coverage in the event of emergency situations or catastrophic events. The main point of buying this insurance is so that you don't end up with huge medical bills if you end up in the hospital with some major health issue.

The application process for short-term health insurance is usually simpler than standard, longer-term health insurance. Short-term health insurance plans are designed to protect against unforeseen accidents or illnesses, rather than to provide comprehensive coverage, and, as such, typically do not include coverage for preventive care, physicals, immunizations, dental or vision care.

Purchasing a short-term medical insurance plan will make you ineligible for any guaranteed issue individual health plans commonly referred to as HIPAA Plans. HIPAA plans are usually very expensive and are generally intended for people with pre-existing medical conditions who would have trouble getting health insurance otherwise. If you wish to maintain your eligibility for HIPAA plans, you should not purchase a short-term plan. Please consult your benefits advisor to discuss your rights under the Health Insurance Portability and Accountability Act (HIPAA) and other rights under state law.

Short-term health insurance plans typically do not cover pre-existing medical conditions. The definition of a pre-existing condition varies by state, but, in general, short-term health insurance policies exclude coverage for conditions that have been diagnosed or treated within the previous 3 to 5 years. If you have an existing medical condition, you may want to research whether you can extend your current insurance. Employer-sponsored insurance can be extended under a government-regulated option commonly referred to as COBRA, which you should seriously consider if you have an existing medical condition.