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 Short term health care insurance may be something that you're interested in when you're between jobs or simply waiting for a new healthcare policy to come into effect. Because it's sold as short-term insurance, the benefits and costs will be different than "standard" insurance policies. So the expectations of the policyholder should be different.
Short Term Insurance Explained
The benefits and costs of short term health insurance are designed to help the policyholder in their transition from one insurance carrier to the next - especially if there is a timing gap between the existing and new policy. Because the expectation is that the duration of the insurance need is relatively short timeframe, the benefits associated with this type of insurance are scaled back. But on the positive side, the costs of these policies are pretty reasonable.
You can usually get an insurance quotation for a 12 month policy, although some carriers may limit quotes to six months. If you've got a really short term need, that's okay too. You can find health insurance companies offering temporary insurance with durations as short as a month.
Short Term Health Care Benefits
For the most part, a short term healthcare policy will cover the same types of medical services as a permanent insurance policy. These policies are usually structured as a fee-based or indemnity program - not a health maintenance organization or HMO. That means you won't be able to schedule a routine check up or qualify for any preventative medical care or immunizations.
Services that are usually covered include emergency care, intensive care services, ambulatory services, x-rays and laboratory work. And while you can extend your policy to cover a spouse or family member, short term insurance policies are pretty strict when it comes to pre-existing medical conditions. If determined that you had a pre-existing condition, you'll lose your short term health care coverage or your health insurance coverage will be denied.
Finding Short Term Health Insurance
The Internet is one of those great resources when it comes to buying things and this kind of insurance is no exception. You should be able to find an ample supply of carriers willing to give you a fast insurance quote at competitive rates. The Internet is home to a large marketplace for these types of services, so take advantage of the low premiums you'll typically find here.
Keep in mind those quotations for policy premiums you receive over the Internet are not final until you've gone through the entire application process. You're never obligated to buy anything without your approval. Quotations are normally supplied free of charge.
Cost of Temporary Health Insurance
As mentioned earlier, the cost of temporary health insurance is usually pretty reasonable. That's because coverage is really more for urgent or emergency care - which thankfully you don't need that frequently. That also means the monthly premiums may be as low as $25 per month and almost always less than $100. But you need to pay attention to three other elements of a policy besides the monthly premiums - coinsurance payments, deductibles and policy maximums.
Deductibles
When comparing insurance quotes, make sure you're making a fair comparison. For example, you need to understand what the deductible is on each policy you're comparing. A large deductible - one in the $2,000 range - means you pay the first $2,000 of medical expenses. That adds quite a bit to the overall cost of the policy if you need to use it.
Coinsurance Payments
Coinsurance is another element of a short term health insurance policy that you will want to take a careful look at before signing up. That's because just like your deductible, it effectively adds to the cost of you monthly premiums. Coinsurance is the term used to describe the health care cost sharing arrangement you have with your carrier.
For example, your coinsurance payments might be a 70%/30% split between the carrier and you - whereby you're still picking up 30% of the costs associated with the medical services provided.
Policy Maximums
Finally, you'll also want to make sure the policy has a fairly high maximum pay-out level. Here we're talking about the $1 million or more range. This is the maximum amount of insurance payments a company will make on your behalf. The chances of you needing this much money is pretty small, so just because a policy states the maximum is $1 million does not necessarily translate into much higher premiums.
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