• eShortTermHealthInsurance Blog

  • Tuesday, September 07, 2010



Short term health insurance offers many benefits to a plan holder who is looking for temporary coverage. For one, it is often cheaper than long term health insurance, which includes many more benefits, although not many of them will actually be used.

Let’s say you have just left your job and are looking to try out your own business for a few months. In this “start up” period, you want to minimize out-of-pocket expenses, and want to ensure that you are still covered for major illnesses. The obvious choice would be short term insurance.

Short-term health insurance covers most unplanned medical illnesses and accidents. Prescription drugs, diagnostic tests, and hospitalization are also covered, which make it ideal as a stop-gap insurance plan that works well. It is also essential to determine the required coverage for everyone in your family.

Just because you will be able to get through six months without coverage for scheduled visits does not mean your children will be okay with it too. Especially in the case of newborns, scheduled visits are a necessity, and you may want to weigh your options before bringing your entire family under a short term health insurance plan.

Out of a job, in-between jobs, just out of college, or looking for a COBRA alternative? You may have to look no further than short term health insurance, which provides vital health insurance coverage for temporary otherwise uninsured periods in life. There are several short-term health insurance plans catering to different purses and requirements. Anthem Blue Cross Short Term Health Insurance is one such plan.

The Anthem Blue Cross plan provides coverage for a minimum of 30 days and a maximum of 180 days, extendable up to 360 days. To be eligible for the plan, you must be under 65 years old, and not eligible for Medicare. Also, you must have been a resident of the United States continuously for the last 12 months.

A range of deductibles, from $250 to $5,000, are available. Although a higher deductible translates into a lower premium amount, it is also important that the insured be able to pay the deductible. So a $5,000 deductible may not work for everyone.

The plan is not a HMO or PPO plan, and does not restrict the plan holder to a particular physician or hospital. That is particularly liberating for those who are in a temporary unemployed period of life. The plan covered unplanned medical illnesses and accidents. The usual exclusions like pre-existing conditions, regular physician visits, and most eye and dental care apply.


The good news these days is that the economy is stabilizing; the bad news is that it’s still not at the level we’d like it to be. Jobs are slowly trickling into the market, and short term health insurance can be your new best friend, especially during these tough times.

So, if you are one of the unlucky few who lost their insurance-paying job during the recession, remember that it is just a matter of time before you turn the corner. And it is exactly this situation that short term health insurance helps you with.

When you’re not sure when you’ll get your next job with health benefits, but are positive it is going to be quite soon, it is time to go hunting for short-term health insurance. Short term health insurance can provide the coverage needed to protect yourself against the costs of sudden medical problems.

However, a note of caution: In some cases, short term health insurance is often not considered comparable coverage for calculation of continuous health insurance coverage. It might also not be considered coverage for the purposes of determining pre-existing conditions.


Short term health insurance is typically purchased by people who are in between jobs, or are about to receive full coverage. It is not meant as an alternative to a comprehensive health insurance plan. Some short term health insurance plans, however, offer great coverage that protects you and your family against astronomical medical bills.

One company that offers attractive short term insurance plans is Assurant, with its Assurant Short Term Medical Insurance plan. The plan is not available in all the states of the U.S. Check whether the plan is available in your state.

The plan covers most costs arising out of unexpected medical situations. Coverage includes hospitalization, physician fees, ambulance services, prescription drugs, and transplants. The plan also offers a range of deductible and co-pay options, to suit your specific budget.

The lifetime maximum benefit is $2 million. As with most short-term plans, coverage does not extend to routine physical examinations, eye and dental care. Pre-existing conditions, pregnancy, and cosmetic treatment are among the exclusions of the plan. The plan offers very handy temporary coverage.


Some people are surprised that short term health insurance plans can be valid for as much as five years! Why, they ask, is it even called short term, in that case? Short term health insurance is named primarily because of the type of coverage it offers.

Generally, it is not advisable to go for short term health insurance if the required period of coverage is more than a year. But sometimes, circumstances may necessitate short term health coverage for more than a year. Consider the case of Ray Jackson. Laid off from his job, he had to get some sort of insurance for his family, and he took a short term health policy for six months.

Six months later, he found a part-time job that did not offer health benefits. Ray was still looking for a full-time job, and renewed his short term health insurance for another six months. When he finally received a full-time job with health insurance benefits, it was just over a year.

However, remember that short term health insurance does not cover routine physical exams. It might be a good idea to weigh your options realistically before purchasing short term health insurance. It is not intended as a permanent substitute for long-term permanent health insurance, which covers a lot more than just sudden illnesses.



What many people don’t realize is that short term health insurance serves as a great alternative to COBRA insurance, especially in today’s economic scenario. COBRA insurance ensures coverage for up to 18 months after a person loses his/her job. It also works well for those who are in between jobs, or have shifted over to a part-time position with no health benefits.

The rules for eligibility for COBRA insurance are very strict, and it is also more expensive than short term health insurance in some cases. Short term medical insurance works as temporary insurance and covers most unplanned medical expenses.

Some typical benefits include hospitalization, consultation, and emergency services. Routine care is usually not covered under short term health insurance. However, short term health insurance cannot be considered for permanent coverage and is best for coverage up to a year, at most.

After short term health coverage, if the plan holder gets back on regular long term health insurance, the coverage is considered as creditable coverage for group plans. What that means is that the coverage counts toward calculation of pre-existing conditions and other factors. Short term health insurance also scores over COBRA in its ease of signing up. Usually, there is no lengthy underwriting process involved.


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