Is short term health insurance worth the cost?
Yes, short term health insurance is worth the cost to those that need it. The question you might ask yourself is, do I need it? This type of health insurance coverage is mainly for college students or people in between policies and jobs. If you are going through a transition in life and want to protect yourself from a sudden major health expense, short term health insurance coverage might be worth the cost to you.
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There are different types of short term health insurance plans from which to choose depending on your circumstance. Although you may be a healthy individual, who makes up most of the short term policyholders, you may not want to take the chance of being caught in a medical emergency situation without coverage. One major medical event could run in the thousands of dollars.
Another reason you may not want to take the chance of going without health insurance coverage is for future coverage. If you go more than a couple of month without some sort of health insurance plan, you will not have the benefit of transferability in addition to a lower transitional rate.
What are some examples of short term health insurance?
Short term health insurance is comparable gap coverage since it is designed to bridge long term policies. Whether you are going to college or have yet to find the job of your dreams, this type of health care plan will protect you from financial devastation. Some examples of short term plans include:
- Discount Plans
- COBRA Coverage
- Travel Insurance
Your short term plan is not going to include comprehensive coverage with preventative or prenatal visits. Nor will it cover obstetric deliveries or certain types of diagnostic care.
What your short term plan will include is your basic visits to the emergency room, major medical, and some discount services. The duration of most short term health insurance policies is 30 days to 36 months with annual renewals. If you have to file a claim, they may not allow you to renew your policy.
How do short term health insurance carriers view preexisting conditions?
Short term health insurance carriers will not take on any types of preexisting conditions. This is one of the ways they are able to keep the high cost of coverage low for this group. If you file a claim with your short term carrier, your condition will be considered preexisting when you establish your long-term plan or another short term plan.
What is COBRA health insurance coverage about?
Most often when an employee leaves a company they are automatically offered a COBRA or Consolidated Omnibus Budget Reconciliation Act plan to carry them a couple of months with the anticipation of the employee either taking on another job with health benefits or some sort of long term plan. COBRA can be effective up to two years although it can also be rather costly to someone between jobs. Some might say the cut off is eighteen months.
Your COBRA coverage can run you two to three hundred a month for an individual. However, some suggest a short term policy is a less expensive way to go. The only question you may have is whether the Health Insurance Portability and Accountability Act or HIPAA will protect the transfer of your short term plan.
Where is short term travel insurance?
Travel insurance is another form of short term insurance, and is used very often by business travelers whose company may not have travel coverage. Travel insurance mainly consists of accidental benefits with dismemberment inclusions. If you have to cancel your trip because of illness or have to be medevac’d midflight, this policy covers the cost.
What is the average cost of a short term health insurance policy?
The average cost of a short term health insurance policy will depend on where you get it. If you are in college, the plans they offer can be barely affordable. The average college student pays as much as $70 for a plan and as little as $30, which is good for a discount dental plan.
Undergrads can remain on their parent’s policy until a certain age, and therefore may not need short term health insurance coverage. It is when you finish your core curriculum that you may need to compare rates. More information is available when you compare health insurance quotes online.
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