• Short Term Health Insurance Blog

  • Saturday, February 04, 2012



Temporary insurance may be short term coverage, but it sure is no fair-weather friend. Most short term health insurance plans extend coverage if you are ill or injured when the plan expires. If you are well and able, all benefits will cease the day the plan expires.

For instance, if you are hospitalized the day your coverage ends, you will get an extension of coverage in most plans. While the level of coverage will decrease and will depend on the individual plan, you will certainly not be thrown out of the hospital!

Under the Assurant Short Term Medical plan, if you become ill or hospitalized when you
are covered by the plan, you may receive continued coverage at no additional cost for 12 months on hospitalization, and $1,000 in medical benefits for up to 60 days if you have a non-disabling condition.

However, note that when the plan expires, you will need to purchase a new plan, and the condition you have been treated for will be excluded under the pre-existing conditions clause. Needless to say, it is always best to read the plan carefully or understand the coverage offered completely before signing on to a plan.


A month or six? How long do you need short term health insurance for? This is a question often asked by those who have lost their regular long-term insurance rather suddenly and are looking for any way to save money.

The answer really depends on the applicant’s needs. If the applicant is taking a break from work, then the period corresponding to the break will definitely require short term health insurance. Then, the applicant can move on to a month-to-month plan.

While calculating the period of insurance required, remember that insurance benefits may not begin the day you start work. It might take around a month for health insurance to become valid, in most cases. Also, if you are thinking about going freelance or joining a small company, ensure that your future employer offers good long-term coverage at a reasonable price.

In most cases, getting coverage through a month-to-month plan is more expensive than the equivalent six-month plan, say. Also remember that even if you purchase the longer term of coverage, you can request a cancellation when you want to, and the insurance company will reimburse the prorated premium in most cases. However, it is best to check with the insurance company or your online agent about what happens when you no longer need coverage.


Maxine Grinner, a designer at an advertising company, was laid off from her job. Young and healthy, she decided to take a break to figure out what she wanted to do. However, she did require insurance, and purchased short term health insurance for the unemployed.

Being cost conscious, she paid for her 6-month Assurant Short Term Medical plan in one installment, saving 20% on the premium amount. However, just three months into her break, she found a great opportunity with another firm which she could not pass up. Maxine was hoping to get a refund of the premium for the three months that she would not require insurance. Will she get a refund?

Unfortunately, the answer is no. Under the Assurant short term medical plan, one-time payments cannot be refunded. This is the trade-off for the 20% premium discount that is offered.

It always makes sense to read the fine print, and when in doubt, ask. Also, it is important to remember that when you are unsure of how long you’ll need short term insurance, you might be better off just purchasing coverage monthly. This is especially true if you are looking for a job, and plan to join one as soon as you get one.


In Massachusetts, Governor Deval Patrick’s administration has discovered that people use a loophole in the healthcare reform policy to trick the system: short term health insurance. Health insurance is mandatory in Massachusetts, and the administration has found that people purchase short term health insurance only when they need expensive medical care. When they are relatively healthy, they prefer to pay the $93 penalty instead of going in for an insurance plan.

However, consider this: short term health insurance costs are lower than the penalty in most cases, and paying the penalty and remaining uninsured seems illogical. Plans such as the Assurant Short Term Medical (STM) plan, Secure Saver STM plan, and Secure 12x3 STM plan are available at $80-$120 a month on average, depending on the various options chosen.

The Massachusetts House is now considering limiting the number of private plans an individual can purchase in a year, and reinstating many of the restrictions regarding coverage of pre-existing conditions.
People who are subverting the system will do well to understand that their actions are costing not just the government, but also their own health. After all, all it takes is one visit to the emergency room, and the amount saved on premiums is completely wiped out!


Most health insurance plans are affiliated with a preferred provider network, or a PPO. That goes for short term health insurance plans as well, which are typically associated with a couple of PPOs. What does this mean? And how is it important? What this means is that he insurance company has negotiated deals with the healthcare services and service providers who are affiliated with the PPO.

What does it mean for you, the plan holder? What it means is that you will receive treatment at the lower negotiated fee. In several cases, the healthcare provider such as a hospital will also be able to directly bill the insurance company for the services provided to you. For you, this means the extra convenience of cashless billing.

The Secure Saver STM plan, for example, offers two national PPOs: ACS and Multiplan. In most cases, using a PPO for medical services is optional. However, some plans decrease the covered amount when the plan holder receives out-of-network medical care.

It is always best to check the names of the hospitals in your area that are affiliated with the PPOs of your plan. The negotiated discount may not seem real because you will not physically see a refund, but the discount is applied toward your bill, and counts toward the usual, customary and reasonable charges. The discount will especially be useful in case of a fixed benefit plan, where limits are imposed on each type of treatment received.


When you’re suddenly handed a pink slip, your mind is on a dozen different things, and insurance may be one of them. Let’s say a colleague recommends

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