• Short Term Health Insurance Blog

  • Saturday, February 04, 2012



Short term health insurance is not just for those who are out of a job. It can be great stop-gap health coverage for new graduates. New graduates are usually unaware that their student health insurance plan will not be valid as soon as they graduate. Some insurance companies do not send out letters to that effect, and in the excitement of graduation and end-of-term work, students often put thoughts of health insurance in the backburner.

However, nothing can prepare a student for life on the outside more than the shock of falling ill and realizing that he/she does not have insurance to cover the expenses. Even if a recent graduate does not have insurance for a few months, temporary insurance can step in easily, offering reasonable coverage at a low cost.

One other option is the possibility of staying on the parents’ insurance. It may not be available in all situations, and it is important to also check the residency requirements of such coverage. Short term health insurance offers coverage for sudden medical expenses, arising out of illnesses or accidents.

Short term plans are perfect for the period between graduation and employer-sponsored health insurance kicking in. Remember that it might take a month or two of employment before health insurance becomes valid. If you are planning a break before joining the workforce, consider purchasing short term insurance for a year at a stretch—you will save valuable money in premium discounts.


Short term health insurance may be the best option for you if you are looking at starting your own business—and do not have any employees working for you as yet. If you are healthy and have just quite your regular job with long term health insurance, you might want to try out short term health insurance while you try your hand at your own thing.

Short term health insurance will cover any major illnesses or accidents that you suffer during the plan period. In this case, you will probably be looking for temporary insurance for a year or so.

When starting your own business, you might be strapped for cash for a few months, and during this time, you want to save money while also taking care of yourself. You definitely don’t want to go the uninsured way. Temporary insurance can be a great idea in this situation.

Short term health insurance covers sudden illnesses, and benefits generally include physician visits, hospitalization, surgery, outpatient care, and some prescription medication. Pre-existing conditions are excluded from coverage and so is most optical and dental care. However, in case you have dependents, you might want to weigh their needs against your means, and determine the best health insurance coverage that works for everybody.


Sometimes, you are looking for temporary insurance for your entire family and other times, just for your dependents. Say you already have insurance through another source for yourself. Your spouse has single insurance too, through his/her employer, and is awaiting insurance benefits for the children.

You now need insurance for just your children. Obviously, you will not be able to purchase short term health insurance for your children as dependents. You will then need to look for plans just for your children.

The Short Term 12x3 Short Term Medical Plan offers coverage for children only, for kids above 2 years and below 18 years of age. This coverage will be similar to the coverage for adults, and separate rates apply. This is not the same as the coverage and rates applicable for dependent children under an adult’s plan.

If dependents, children under age 19 can be included in their parents’ or guardians’ plans itself. If a dependent is a full-time student (typically in college) the age limit is increased to 25 years. In general, the upper limit for coverage through the Secure 12x3 short term health insurance plan is 65 years.


Jack Morsen purchased short term health insurance from the Secure Saver plan after he was laid off work. The plan covers expenses related to sudden medical illnesses and injuries, including inpatient and outpatient care, doctor visits, surgery, medical diagnostics, and ambulance services. The plan also covers inpatient prescription drugs.

Jack fell ill with a high temperature and shivering, and was hospitalized for his condition. Thankfully, his Secure Saver plan covered the expenses of his treatment at the hospital. He was out of the hospital in a couple of days, and had scheduled a follow-up visit with the physician at the hospital.

The physician changed his medication a bit, in keeping with his recovery plan. When Jack tried to get his new medication from the pharmacy, he found that he had to pay full charge for the new medication. Thinking it was a clerical error on the part of the pharmacy, Jack submitted a reimbursement claim, which was denied.

The reason? The Secure Saver Short Term Health Insurance plan covers prescription medication for inpatient care, but the minute the patient is out of the hospital, subsequent prescription medication is not covered. As always, it pays to read the fine print of any document you sign, especially health insurance.


Many folks consider short term health insurance a good idea, but not really for them. It pays to pause and think about your needs if you are currently without a long-term insurance plan. Temporary insurance may just be the right type of insurance coverage for you.

Typically short term health insurance works for those who are looking for coverage for the short term, although plans are available for durations up to three years. The Assurant Short Term Medical Plan, for example, offers a range of benefits with various options for the deductible amount.

The Assurant Short Term Medical plan offers prescription drug benefits, doctor visits for unexpected illnesses and injuries, inpatient and outpatient hospital benefits, emergency room care and ambulance services. Costs such as those for outpatient and inpatient surgery and X-ray and other diagnostics are also covered.

In case you require an organ transplant as part of a covered condition, it is also covered, up to a maximum of $100,000. This amount also includes a $10,000 benefit toward donor expenses. The plan might be the best fit for you and your family, especially if you do not have any significant pre-existing conditions, which are excluded.


Short term health insurance is often seen as a viable COBRA insurance alternative. COBRA is usually more comprehensive in terms of benefits, but is also more expensive. However, the current economic scenario has made COBRA cheaper, with the help of COBRA insurance subsidy.

Many a time, people are confused about the relative costs of COBRA insurance vs. short term health insurance. Is COBRA really more expensive than short term health insurance? And what do these subsidies mean?

Basically, COBRA stands for Consolidated Omnibus Budget Reconciliation Act and seeks to ensure that those who lose their employment still have the option of continuing their current health cover. The U.S. Government passed an amendment, extended several times, of a 65% subsidy in COBRA premium. Currently, this subsidy is valid for those who lost their jobs through June 2.

Even with the subsidy, however, the average COBRA insurance plan will cost an individual around $400 a month. If the plan holder and his/her family are in good health, it is worthwhile to consider short term health insurance as a real alternative. It is best to take stock of several factors before making the decision, such as projected period that the insurance is needed for, chances of getting back on a long-term health insurance plan, and the affordability of COBRA.

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