With unemployment and economic instability still prevalent in most sectors of the American economy, medical insurance options seem to be narrowing for those without jobs. short term medical insurance can neatly fill the gap, and can substitute the more expensive COBRA insurance in most cases.
You might have heard the term COBRA insurance being bandied about at your workplace. It is essentially coverage that commences after a person loses his/her employment, so that coverage is continuous. But then, you might not be aware that COBRA coverage is often more expensive, and that you may not automatically qualify for it. In this scenario, temporary insurance provides a viable alternative.
Short-term medical insurance works as temporary insurance, and covers most unplanned medical conditions. Inpatient and outpatient care, prescriptions, diagnostics, and emergency services are all usually covered under short-term medical insurance. However, temporary plans usually exclude pre-existing conditions and pregnancy.
You can usually purchase temporary insurance for periods ranging from a month to a year. Remember that some plans may consider each renewal a new policy, which means that the premium rates may have changed, and also your eligibility in terms of pre-existing conditions. You will find that the process of renewal is actually very simple and easy.
While a person can use short term insurance to tide over an otherwise uninsured period in life, temporary insurance cannot substitute long-term insurance, which provides full permanent medical coverage, including routine check-ups, pregnancy, and other medical conditions.
When getting back on a regular long-term health plan, short-term medical insurance can often be counted toward creditable coverage for group plans. Labeling an insurance plan as creditable coverage means that the plan counts as equivalent coverage when determining pre-existing conditions and effective continuous period of coverage. Short-term medical insurance plans are usually not considered creditable coverage for individual plans.
One other factor that tilts the balance in favor of short-term medical insurance is the ease of signing up for a plan. Being a temporary plan, there are usually no lengthy underwriting procedures, and the plan can typically be purchased online.
Short-term medical insurance works best for people who are looking for stop-gap insurance between jobs and if insurance is expected to be required for six months or less. It can provide a viable alternative to COBRA insurance in case of a person losing his/her job. In that uncertain situation, short-term health insurance can step up to the plate and deliver.
Dan Miller often writes about short term insurance.
Tags: family, Finance, general insurance, Health, health insurance, Insurance, Medical, temporary insurance