For many, short term health insurance is an essential option. Designed to help Americans without a healthcare guarantee, temporary insurance ensures coverage for individuals and family members who experience major medical events, unexpected illnesses, and accidents.
These plans are used to bridge the gap between more permanent insurance options. Whether you are waiting for a new plan to take effect, or need coverage while you find something more fixed, short term health insurance is the best way to ensure coverage for you and your family.
Understanding Short Term Health Insurance
Short term health insurance is a type of health plan designed to temporarily offer coverage to people without coverage. Depending on the state and specific plan, temporary coverage varies between one month and four months.
Since going without insurance is a risk that most people are not willing to take, temporary insurance is an excellent temporary solution for those who are facing situations such as:
- Starting a new job
- Waiting for a new plan to begin
- Are without health insurance at the moment
- Missed the Obamacare Open Enrollment deadline
Short term plans are not compliant with the Affordable Care Act (ACA or Obamacare). The ACA mandates coverage for the Ten Essential Health Benefits, while these non-compliant plans are not required to do so. Even so, short term health insurance covers a variety of other medical services.
What Does Temporary Health Insurance Cover?
Depending on the program and state, specific short term health insurance plans may cover variations of the following:
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Ambulatory
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Emergency
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Hospitalization
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Surgical
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Lab & X-Ray
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Prescription
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Rehabilitation
These plans are intended to cover unexpected illness or injury. They are an affordable option to have excellant coverage until you get a qualified plan.
But no matter the type of plan or state, temporary health insurance does not cover specific services—like mental health, substance abuse, preventive care, and pre-existing conditions.
What Temporary Health Insurance Doesn’t Cover
The most important thing to know before purchasing temporary health insurance is that it doesn’t cover pre-existing conditions. So, you can’t buy a plan with the intent to have current illnesses covered by your provider.
This is because short term insurance is “medically underwritten,” which means that an insurer is allowed to use an applicant’s medical history to determine whether or not they will be approved for the policy. Short term insurers may reject your application if you are unhealthy or have a pre-existing condition.
Medical underwritten is one of the major differences between short term coverage and Obamacare. Plans that are ACA-compliant do not have medical underwriting and accept all applicants, no matter their health history.
Can You Renew Short Term Coverage?
Beginning in September 2024, you can longer renew your short term coverage. If you want to extend your plan, you’ll have to re-apply for short term coverage with a new insurance company when you policy expires.
Short Term Health Insurance Plans
Having temporary health insurance is the best way to ensure that you and your family are covered if an unexpected medical emergency occurs.
Although these plans don’t cover pre-existing conditions, life can be unpredictable—and the last thing you want is to face an emergency uninsured. Short term health insurance plans are extremely beneficial in this aspect, while also offering fast coverage, an extensive network of doctors, low premiums, and more.
Get Covered Quickly
Short term health insurance is easy to apply for. All you have to do is fill out an application online. Once your application has been approved, coverage will likely begin immediately or the next day.
Unlike Obamacare, you can also apply for coverage anytime during the year since there are no open enrollment restrictions.
Extensive Network
You don’t have to change doctors just because you’ve switched to temporary health insurance—so if you already have a primary physician, you can continue seeing them without skipping a beat.
If you are searching for a doctor, you can select your own physician from an extensive network of healthcare providers.
Lower Premiums
One of the most appealing points of short term health insurance is the low premiums. These monthly payments are noticeably less than ACA-compliant insurance, making temporary coverage more attractive and realistic for many Americans.
For example, the typical premium for an ACA-compliant plan is $448 per month, whereas people can expect to pay as low as $113 for short term coverage. This is because these plans are designed to meet all types of budgets and needs for any size family with the opportunity to choose from several deductible options.
Covers The Whole Family
Going without protection is extremely risky, which is why short term insurance allows individuals to purchase family-wide coverage to include spouses and dependents. However, because short term health insurance is medically underwritten, all family members need to meet the requirements of the plan.
Cancel Anytime Without Penalty
Short term insurance is a temporary solution, you only pay month-to-month so that you can cancel anytime.
Is Short Term Health Insurance Right For You?
Short term health insurance is a great option for securing your health while you wait for more permanent solutions. Although some people may opt to go without coverage while searching for a more permanent plan, some states have penalties—also called individual mandates—if you remain uninsured.
As long as you are healthy and between 18 and 65 years old, you will likely qualify for short term health insurance, especially if you:
- Missed Open Enrollment for Obamacare
- Are waiting for other coverage to begin
- Just turned 26 and are off your parents’ insurance plan
- Are in-between jobs or are waiting for benefits to begin
If you think you qualify, then you can easily apply online and receive an approval notification within minutes. These plans are not purchasable through HealthCare.gov; instead, you will need to buy temporary health insurance directly from an insurance company, or through a private exchange like iHealth Agents.
How to Apply for Temporary Health Insurance
Let’s be honest: life can get a little crazy and things can get unpredictable. So if you find yourself without health insurance but need coverage immediately, temporary coverage is the best way to ensure healthcare—all while guaranteeing your dependents coverage and without paying high premiums.
Finding the right plan can definitely be a challenge, but you can start today by browsing for the best policy on the iHealth Agents, which is a private exchange that allows you to search for some of the best plans suited for you, your family, and your budget.