Understanding Short Term Health Insurance

First things first. “Short Term health plans”, “Temporary insurance”, “Short Term medical” – they’re just different words for saying the same thing. No matter what you call it, a Short Term health insurance plan is something to consider if you have a gap in coverage. A Short Term plan doesn’t come with all the bells and whistles of an employer or Affordable Care Act (ACA) plan, but it can cover a lot of the basic health insurance needs you may have – hospital treatment, doctor visits, specialist visits, ER, X-rays, lab work – basically most of the biggies. There are a number of plans to choose from. No surprise…the more you pay, the better the benefits.

What’s nice is you can cover your spouse and dependents, but it doesn’t cover pre-existing conditions. So if you currently have a health problem like cancer, diabetes or asthma, you won’t be able to get coverage.⁺

Although it shouldn’t be considered a substitute for long-term health insurance, Short Term may be a great security blanket to get you by for up to 360* days. It’s designed to be affordable, too. Terms can vary by state and insurer, so just make sure you know what you’re getting.

^{+Health conditions mentioned are not a complete list.}

^{*In many states, the maximum duration for Short Term plans is just under 12 months, or 360 days.}

• Choose a higher deductible
• Pay your total premium up front (This option is not available with all carriers.)
• Choose a plan with fewer benefits
• Just be aware that the less you pay, the less benefits your plan is likely to include.