Short-term medical insurance or temporary medical insurance plans are best suited for individuals who are covered by COBRA, in-between jobs, or are waiting out their new employer’s health insurance probationary period. Recent college graduates looking for a job and people waiting for their Medicare benefits might find short-term medical insurance a good option as well.
Short-term medical insurance is designed primarily to cover major medical expenses that may occur in the event of catastrophic illness or accidents. It will typically cover expenses such as hospital stays and services, surgeries, outpatient services and much more. Usually, a short-term policy will be subject to a deductible, co-payment or co-insurance, and will often contain provisions and/or limitations laid out in the policy’s details.
Short-term medical insurance, unlike regular insurance, terminates after a certain period. When the plan expires is determined by the length of time you elect for coverage and when the policy actually begins. Most short-term medical insurance plans last from one month to one year. Some policies are billed on a monthly basis and allow the insured to terminate their policy before the official end-date.
Most short-term medical insurance policies extend coverage for up to $1-million to $2-million with a deductible from $250 to $5000. Co-insurance may range from 80/20 or even 50/50 for the initial $5000-$10,000 in medical costs.
Is Short-Term Medical Insurance Right for Me?
Short-term medical insurance is ideal for individuals who are unemployed, COBRA benefits are running out, recently graduated from college, or any situation where a brief coverage gap may occur. Short-term medical insurance may also be ideal for individuals who are eligible to receive COBRA coverage but would rather not pay its high costs. Many times someone who has just started a job may have to wait for a period of time before they are eligible for their employer’s group coverage. During this probationary period, short-term medical insurance may be purchased as a precaution in case the unthinkable occurs.
Individuals 64-and-under, their spouse and dependents are typically eligible for short-term medical insurance coverage. You may not be eligible if you have a pre-existing condition, are already insured under another plan, are pregnant, or have ever been declined health insurance in the past.
Enrolling in Short-Term Medical Insurance
There many companies out there who offer affordable short-term medical insurance and InsuranceUSA.com can help direct you to them. These policies can typically be purchased through a company’s website. ID cards and a policy certificates are usually delivered via e-mail or may be down loadable once the policy has been purchased.
Short-term medical insurance does not usually involve a lengthy approval process and coverage may often begin, assuming you’re in good health, in as little as 24-hours after purchasing a plan. Sometimes the approval process can take a much as several weeks depending on whether you disclose that you have any prior health problems and may result in you being declined coverage.