The Fineprint
Best Use of Short-Term Health Insurance
What is a short-term health insurance plan?
This type of health insurance plan is designed to aid healthy individuals by lowering their costs and covering basic expenses and procedures such as primary care checkups. This plan spans anywhere between 1 to 12 months, consisting of numerous benefits of lower premiums, quick enrollment, and coverage. Although the perks to this plan are favorable, cons are presented in high deductibility and less coverage. This is why it is imperative for those looking to enroll in a short-term health insurance plan to deduce whether their circumstances are those that would greatly profit from this insurance plan.
Check out our Glossary of Health Insurance Terms if definitions are needed
Steps to Take to Best Use Short-Term Health Insurance
Step 1: Have Limited Medical Needs
Short-term health insurance plans typically have higher deductibles, meaning you must pay more out of pocket before the insurance begins covering expenses. Because of this structure, each doctor visit or medical service can cost more initially. However, this may work well for individuals who are generally healthy and do not anticipate frequent medical visits, since they are less likely to meet the deductible.
It is important to note that coverage is not guaranteed under short-term plans. Applicants may be denied coverage based on preexisting conditions, and many plans exclude services such as maternity care and mental health treatment. Therefore, these plans are better suited for individuals who do not expect to need extensive or specialized medical care.
Step 2: Use it When in a Crutch
Short-term plans often have a fast enrollment process and provide coverage relatively quickly. Because of this, they are best used as a temporary solution during unexpected gaps in coverage. This is why conditions like job changes, awaiting Medicare, or outside the enrollment period of another insurance plan are perfect instances for short-term health insurance plans.
The benefits in short-term health insurance are limited to keep premiums lower, which are the regular payments needed to keep the insurance. This entails that you would have to struggle significantly less every month or quarter to remain in a short-term health insurance.
Step 3: Require Temporary Coverage
Short-term insurance plans usually last between 1 and 12 months, with many lasting around 4 months. They are specifically designed to provide temporary coverage rather than long term protection. This is the reason why many who are interested in utilizing short-term health insurance insurance are looking to do so within a small timeframe before transitioning to a longer lasting type of insurance.