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Health insurance coverage is a hot topic in the United States. With the recent pandemic, it could be said that the conversations surrounding it have become even more aggressive.
Not all people are able to afford insurance plans offered through the marketplace. As a result, another option available is a short term health insurance plan.
Are short term health plans worth it? Can you transition the plan to regular insurance? What all is covered?
If you’re looking for the answers to these types of questions, keep reading to learn what you need to know.
What Is Short Term Health Insurance?
Short term health insurance is a temporary type of insurance you can get if you aren’t able to get on a regular insurance plan or if you are looking for a lower-cost option.
To get insurance on the marketplace, you have to do so during an open enrollment period. If not, you will need to have a qualifying life event for a special enrollment period.
If you’re looking for health insurance now and can’t wait until the next time you’re eligible to buy a plan, short term coverage is a great alternative. While they cover fewer medical options, they are cheaper and might be more cost-effective.
Are Short Term Health Plans Worth It?
The Affordable Care Act (ACA) was created to make health insurance more affordable and provide better benefits to people that had it. It also created the marketplace where people have the option to buy their own insurance plans if they didn’t receive an option through their employer or elsewhere.
Before deciding to purchase a short term health plan, you need to know the facts. One of the biggest things to consider is that short term health plans are not managed under the Affordable Care Act. They don’t have to follow the same set of rules as the plans on the marketplace.
Short term medical insurance is not covered under the ACA and has its own set of rules and standards.
For example, short term plans are allowed to charge more or deny coverage for a plan if you have a pre-existing condition. Insurance plans in the marketplace are not allowed to do this.
Short term health insurance is also not required to cover the 10 essentials that ACA plans are, which include prescriptions or hospitalization. If you have chronic conditions that require a lot of medical assistance, you may find that short term plans aren’t going to be good enough for you.
With that in mind, the good news is that short term plans are meant to be used for shorter periods of time, so you can always transition to a better plan when the time comes. They also have a lower deductible and premium cost than any plan you would buy on the marketplace.
Top Reasons to Get Short Term Health Insurance
The biggest reason you may want to consider a short term health insurance plan is if you need health insurance and it’s outside of the open enrollment period, but you also don’t qualify for a special enrollment option.
Because short term health insurance is meant to be temporary, it’s the perfect solution for people that need time to transition between health insurance plans. It may be that you’re starting a new job or you’re waiting for Medicare to begin coverage.
You can check out this article to find out more about the difference between short term health plans and traditional plans from the marketplace.
Short term health insurance will help you if you have a significant medical incident, so in that way, it is definitely better than having nothing at all.
Do You Need Temporary Health Insurance?
After learning about short term plans and how they differ from a traditional health insurance plan, you may be thinking about whether or not it’s the right choice for you.
Are short term health plans worth it? They can be, but it depends on your current situation and health needs.
Do you want to get more great content like this? If so, check out the Health tab on our website to find out more about what’s going on in the medical field.