What Is Short Term Insurance? Understanding Short Term Health Insurance
27.5 million Americans were uninsured by the year 2018.
This figure represents almost 8.5% of individuals within the population without health coverage. With medical costs in the United States skyrocketing, having a reliable health plan for you and your loved ones is imperative.
There are various forms of insurance covers you can benefit from as an individual or family. Apart from the broader categorization of insurance as private and public, there are also short term health insurance plans.
You may have heard about it, but still wonder, “what is short term insurance?” Well, you aren’t alone. Many Americans often have questions about short term insurance and how it applies when seeking health coverage.
Read on for all the answers you may need regarding short term health insurance.
What Is Short Term Insurance?
Life is full of unpleasant surprises. Insurance coverage should be a critical cautionary measure to help you overcome such instances of life-related uncertainties.
Short term insurance may offer you that temporary medical coverage you may need so urgently during such unexpected scenarios.
Short term insurance is a type of health plan that offers you temporal coverage during two common scenarios.
The first is during instances where you may be in between a shift from one health care plan to the next. Similarly, the second is when locked out or an enrolment plan, but you still need short term insurance coverage to cushion you in case of an emergency.
Short term health insurance can present distinct challenges if you don’t fully understand how it works.
Some of the common grey areas include questions such as how much the coverage plan costs, what they cover, and how long such covers last. Based on these factors, short term health insurance may vary from one plan to the next.
What Is Covered In Short Term Coverage?
Most people have questions on what exactly constitutes short term insurance coverage.
Short term health insurance plans don’t necessarily have to comply with the Affordable Care Act (ACA) guidelines. As such, companies that offer this option don’t have to conform to the set minimum essential coverage stipulations under ACA.
You may be eligible for coverage under short term insurance for preventive care. This is the kind of care you may receive to prevent illnesses.
This option may include other approaches to care such as counseling, screening and vaccinations. When you enroll for short-term coverage, you are eligible to receive preventive care.
We all have such instances where we need to make visits to the physician. Such visits may be for consultation purposes.
You may also need to visit the doctor as a result of a scheduled appointment as a follow-up for an ongoing treatment regime.
In either of these instances, you will incur costs.
If you’re in between insurance coverage, you may end up incurring charges you may not have planned for in your budget. However, with the temporal insurance coverage, you can navigate past routine doctor visits courtesy of the coverage plan.
For most people who apply for short term health care coverage, urgent care is at the heart of their decision.
So, what exactly does urgent care entail? Well, there are health-related conditions you may consider critical, but not life-threatening. You probably have come across urgent care centers, which deal with such concerns.
Most urgent care facilities have a stand by doctor, labs and X-ray equipment. These facilities ensure that individuals with urgent healthcare needs get immediate attention.
Well, short-term insurance can ensure health care coverage when you aren’t enrolled for a permanent cover but still require urgent care.
Some of the more common concerns treated in urgent care centers include colds, minor bone injuries, coughs, small cuts, eye infections, and UTIs.
Most urgent care centers handle such minor but critical health-related interventions. However, in cases of emergencies, you may need to consider emergency room care, which may not be within the short term care option.
You may need to ensure that your healthcare provider defines the extent of coverage you are entitled to, before committing.
Which Instances Would Warranty Short term Insurance?
This is a common question that those who’re seeking insurance coverage grapple with each time. Three observable instances would warranty the choice of short term insurance coverage.
The first is during instances where you may have missed the open enrollment window for your insurance plan of choice. Most traditional health –programs have a period set out within which open registration occurs. But if for one reason or another you fall out of this option you may consider short term plans albeit temporarily.
Job loss is a common yet unfortunate turn in life. But given the fact that you still need health care coverage even when in-between jobs, you may consider short term health care to keep you within safe limits in case of a health care emergency.
Most parents have health coverage that covers their children as long as the kids are within certain age-limits. For most insurance providers, the set age limit is 26 years.
Short term health insurance may be a useful option during such instances to ensure coverage before settling for a long-lasting health indemnity once the age limit for dependence is over.
You need to consider your situation and assess why you need temporary insurance. Then approach a health care provider and seek proper guidance on what works best for you.
Now that you understand how short term insurance coverage works, you need to consider the costs.
How Much Does Short Term Insurance Cost?
With short term health insurance, there are certain upfront costs you should be aware of before committing. Just as with most plans, you need to pay premiums every month. The rates of premium paid depend on the type of coverage you choose and the types of service under such coverage.
You’ll also pay deductibles, which often tend to be higher than most other traditional health plans. As such, you may have to pay out-of-pocket for medical coverage until you meet the set deductibles target. You need to inquire from your insurer on how deductibles apply before committing.
The other common extra cost you need to be aware of is coinsurance. Coinsurance is often shown as a percentage and includes the fees you share with your insurer once the set deductibles are reached.
Short Term Insurance Got Your Back During Instances of Urgent Care
Nothing can be more frustrating than dealing with a medical emergency while unprepared.
For people wondering “what is short term insurance,” this option keeps you covered in case you are caught out of an insurance plan albeit temporarily.
Don’t be stuck in between health insurance covers, if unemployed or during the transition from your parent’s insurance plan. With this option, frustration during health care emergencies is a thing of the past.
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