December 22, 2019
What is
Short Term Health Insurance?
Short Term Health Insurance has many different names like temporary health insurance, short term medical (STM), short term insurance, short-term health plans. Short term health plans offer major medical type benefits in the case of unexpected accidents and illnesses. They are used for individual and family healthcare coverage and can last for 6 months or a defined term of up to 364 days and renewable for up to 36 months depending on your state.
These plans are generally much more affordable than a typical major medical insurance plan and have significantly lower premiums and by the way, STM – Short Term medical is used more in the field of health insurance then most, so don’t get confused when you hear someone say STM.
Short term health insurance in Florida tends to often be limited indemnity health insurance plans that consist of solely catastrophic health coverage. Therefore, the majority of short term health insurance plans do not cover doctor visits, prescription medications, or other preventative care. Temporary health insurance deductibles can generally be higher depending on the company.
Short term health insurance plans are ideal when you need medical coverage for a short, yet defined period of time and need it immediately. This is because temporary health insurance is normally paid for in advance. Such plans offer less comprehensive benefits than most standard individual plans.
A short term health insurance plan may be for you if there is a short gap in your insurance. For example, if you lost your job and have begun searching for new employment with health insurance benefits, affordable temporary health insurance can help bridge the gap. Short term health insurance coverage is also suitable for people who are recent college graduates or on strike. With affordable short-term health insurance, you have time to compare and contrast individual health plans and make it through the waiting period without feeling desperate.
Underwriting standards for affordable temporary health insurance are normally stricter than normal individual or family plans. If you have a pre-existing condition, you may not be able to buy a short term health insurance plan at all. In this case, an individual policy may be a better value than short term health insurance if you can afford to wait a little while before your coverage takes effect. Most individual plans allow you to cancel coverage at any time.
How Does Short Term Health Insurance Work?
Short Term Health Insurance is an affordable transition option for people who do not have an ACA or employer-sponsored plan. It can bridge the gap for people moving from full time employment to self-employment, from college graduate to employee, or other scenarios where finances are tight and the future unpredictable. It is best for people who are in overall good health, don’t have certain chronic conditions, or complex medical needs.
ACA plans offer benefits for chronic and complex conditions, including mental health needs, and would be more appropriate for folks with larger concerns or requirements Additionally, people who have had a significant health event or medical condition in the past five years may have a hard time finding a Short Term Health Insurance plan that will accept them or provide coverage for their pre-existing condition.
Your best option for Short Term Health Plans could be used as followed:
- Are college students, a recent graduate, or have aged out of your parent’s health plan and you need insurance.
- Missed the annual Open Enrollment periods for Obama care /ACA plans.
- Have a waiting period before you can enroll in another major medical insurance plan.
- Are between jobs, a part-time or temporary worker, or looking for a less expensive alternative to COBRA.
- Recently retired but are still too young for Medicare.
- Does your hospital or doctor of choice not accept Obama care?
- If you have an employer who doesn’t provide benefits.
- Are you self employed or run a small business and your annual income is above the ACA thresh hold
Short term health insurance isn’t for everyone though. It is streamlined health insurance, designed to help you when you get injured or become ill. It does not cover pre-existing conditions, and it does not offer the minimum essential benefits of an Affordable Care Act (ACA) health plan — no maternity, no mental health, etc….
But if you answered yes to any of those questions, short term health insurance could be the best option for you.
There are 5 advantages of short term health insurance:
- You don’t have to change doctors! Short term plans offer broad networks and/or allow you to go to the hospital or provider of your choice.
- Short term health coverage has no open enrollment period restrictions, so you can apply at anytime.
- You will usually be notified within minutes if your application is approved.
- Short term health plans are available without a waiting period so in many cases you can use your coverage as early as the next day!
- You can month to month and cancel your policy anytime because short term insurance is temporary!
Why Short Term Health Insurance and Not Something Else?
- Short term health insurance plans have premiums that can be generally much less expensive overall because the benefits are streamlined and carriers underwrite the policy–you have to apply. The advantage is, you get what you need!
- Short term medical insurance plans aren’t necessarily short anymore. Like I mentioned above, some can be purchased for up to 364 days in many states and renewed for up to 36 months, but check with your state to be sure.
- With no tax penalties anymore, having a Short Term Health plan isn’t a risk. You can purchase them anytime and there’s no waiting period like the ACA.
- Short term health insurance has unrestricted networks so you can choose your short term health insurance plan to pay for services from ANY doctor or hospital.
Yes, you can keep your doctor! With most short term plans, you will also receive discounted provider network rates.
- Even with subsidies, Obama care plans can feel out of reach because of the coverage plan they provide. Even if you choose a plan with a “0” deductable, the plan may provide less coverage then the STM plan. So reviewing them are a must.
- Short term medical plans are considered creditable coverage under the Health Insurance Portability and Accountability Act. Starting in 2019, there’s no longer a penalty for having them instead of an ACA plan. Premium payments will not increase during the coverage period either.
Short Term health insurance is designed to protect your finances and health which will provide a sense of peace of mind. It’s not worth the risk to go without coverage.
