Short-Term Health Insurance

Short-term health insurance is a variation on Individual and Family health insurance, providing temporary coverage for individuals or families for 1-12 months. Short-term health insurance presents an alternative for those who expect to obtain employer-sponsored health insurance in the foreseeable future or who are waiting for another health insurance plan’s coverage to begin. A short-term health insurance policy works like an "indemnity" plan which generally gives you the freedom to go to any doctor or specialist you like. However, most plans do require pre-certification, which is an obligation that you should become familiar with.

Short-term health insurance is typically not intended to provide coverage for preventive care, but to protect members from the unforeseen, such as accidents or serious illnesses. Typically, preexisting medical conditions are not covered under a Short-term health insurance plan. Surgery, hospital care, emergency services, diagnostic tests, prescription drugs, follow-up office visits, and even limited mental health care are included under most short-term health policies, albeit with sub-limits and special conditions.

Find Affordable Short Term Health Insurance

Part-time and temporary employees are among the most likely consumers of short-term health insurance as many corporate plans wont cover part-timers.

• People between jobs are also among the most likely consumers of short-term health insurance. Short-term underwriters will gladly accept individuals who are temporarily out of work, which is often not the case with the standard health insurance markets. Many people who are laid off or are between jobs can continue coverage with their previous employer under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for up to 36 months depending upon the circumstances, until a new employer's plan kicks in. Some people might experience sticker shock upon learning what their COBRA premiums will be in order to maintain a corporate plan. If COBRA premiums are too high for your budget, and you dont need coverage for pre-existing conditions, a short-term policy with lower premiums might be the solution.
• Recent college graduates are another group of consumers of short-term health insurance. Many grads will look for jobs offering health insurance benefits, but until they succeed, short-term insurance can fill the gap. (For recent grads looking for more permanent coverage, many college alumni associations offer some sort of group health policy to their members.
• Those losing dependent status under their parents' health coverage are also likely consumers of short-term coverage. If you reach age 18 and are not enrolled as a full-time student, you will most likely be dropped from your parents' health insurance policy. In this situation, you will be eligible for COBRA, but premiums can be very high. A short-term policy can keep you insured for less until you find a job that offers health insurance, or you enroll in an individual health plan.
• Finally, you might consider a short-term plan if you are temporarily without insurance for some other reason. Maybe you are on strike, recently discharged from the military or have retired early and need coverage until you qualify for Medicare.

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