Did you miss the enrollment period for the Affordable Care Act (ACA) coverage, or Obamacare? Or maybe you chose to forgo Obamacare at this time. Either way, a short term health care insurance policy might be just what the doctor ordered. In fact there are several reasons you might want to consider getting a short term policy.
Short term health insurance covers the policy holder for up to a year, which is ideal for some who are looking for coverage to fill a gap between regular policies.
Meant to be temporary, short term policies are typically bare bones, covering major medical and hospitalization without the bells and whistles like doctor visits, prescriptions and maternity care. These policies don’t have to meet ACA minimums and they cover less. That means premium costs are low, as much as 50% less expensive than ACA policies.
People who might find short-term health insurance coverage a good solution:
- Missed the open enrollment deadline for an ACA plan
- Are young and healthy and don’t have extensive health care needs
- Don’t qualify for Obamacare subsidies due to income
- Are between jobs that provide health insurance
- Need coverage while waiting for employer benefits to kick in
- Are temporary or seasonal workers
- Need coverage as an international student or are a foreign national
- Don’t qualify for ACA, Medicaid or Medicare but still need coverage
- Will soon be eligible for Medicare and need temporary coverage
So what are the downsides to short term health insurance?
- These policies require a medical underwriting test, so you can be turned down because of pre-existing conditions
- Benefits are limited to major medical and hospitalization
- Coverage only lasts for up to 365 days at which point you have to apply again
- Because they don’t meet ACA requirements you are not exempt from tax penalties
If short-term health insurance coverage is right for you, explore your options and get quotes using our online quote generator.