How To Chose A Short Term Medical Plan
As the name implies, short-term medical insurance is ‘filler’ insurance when you are between coverage. It offers medical coverage similar to that offered by traditional medical care insurance providers for a limited period of time.
Short-term medical insurance is commonly used for:
- Individuals who have recently changed jobs or who have been laid off for an extended period of time
- Recent college graduates who have yet to find employment and are no longer eligible to be covered under their parents medical insurance plan
- An alternative to COBRA medical coverage
- Individuals who are waiting for a new health insurance policy to take effect, typically sixty to ninety days after the start of new employment
- Individuals who retire early and are not yet eligible for Medicare health insurance
- Individuals who qualify for any of the above and need coverage for themselves and their family members
Short-term medical insurance is generally available to anyone who falls within a particular plan’s eligibility requirements for age and health, which typically means anyone under the age of sixty-five. Most plans are active twenty-four to forty-eight hours after you have applied and been accepted.
Short-term medical insurance is not designed for wellness visits such as physicals. It is designed only to cover your medical expenses in time of sickness or injury.
Unlike with managed health care, you are not limited to doctors listed within the provider’s network. Short-term medical insurance can be used with any health care provider, under the terms and conditions listed by the insurer.
Anyone who was being treated for a condition prior to beginning a short-term medical insurance policy will not be covered for continued treatment of that condition. Short term medical plans only cover new sickness or injury from the start of the policy period.
Choosing a short-term medical plan to cover you or your family is no different than choosing a permanent medical insurance provider. Evaluating the anticipated needs of your family for the duration of your enrollment will help you find a balance between coverage features and your budget.
For individuals, the younger you are, the less the plan will cost. Currently, short-term health plan coverage can increase in cost roughly 35% for a thirty-nine year old as compared to a twenty year old.
For those looking to cover families, most plan prices are dependant on the number of family members and their respective ages.
Plan pricing will also depend on the deductible and co-pay option you choose. The higher the deductible for your coverage period, the less the plan will cost.
In addition to meeting the deductible before the short-term medical coverage begins to pay for medical expenses, there is also a co-insurance cost (usually 20% of the service fee), which is paid by you.
If you have not started permanent or long term medical coverage by the time your short term medical policy ends, you may re-enroll for a new short-term policy as long as you continue to meet the eligibility requirements.
