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Short Term Health Insurance

Often customers will ask about short-term policies to bridge the gap between Medicare enrollment.  Short-term health insurance covers basic health care costs for short periods are intended to be a stop-gap measure between two long-term health insurance plans. In many cases, these plans are significantly cheaper than other health insurance plans, and you can enroll at any time during the year, not just during open enrollment.

Short term health insurance policy on a table.

When Should I Use Short Term Health Insurance?

Short-term health insurance may be the perfect solution if you have a gap between health insurance policies, such as when you are changing jobs or waiting for Medicare.

You may be wondering what to do if you do not want to spring for more expensive options like COBRA coverage or those plans available through the Affordable Care Act. It's not a good idea financially to risk it and go without insurance because if you have a major medical emergency, you could find yourself hundreds of thousands of dollars into debt.

That's where short-term health insurance comes in. Short-term health insurance can provide a low cost, short-term option to help you fill in the gaps you have health insurance coverage and can help you avoid having to pay for medical bills with no health insurance.

How Much Will Short Term Health Insurance Cost?

Short-term health insurance can be very inexpensive, with monthly rates as low as $25 a month. However, keep in mind that all the plans all operate with a high deductible that must be met before insurance begins to pay medical costs.

Some plans provide full coverage once you have met the deductible other have additional coinsurance. If you are pregnant, most short-term health insurance will not cover you, and if your spouse is pregnant they may not cover you on an individual policy as well. Generally, short-term health insurance does not cover well medical visits or other routine care that would fall under an annual doctor's visit.

How Long Will Coverage Last?

Short-term health insurance policies have a time limit on how long they will provide coverage. Under the Obama administration, you could only be covered for up to 90 days. However, these rules were recently relaxed and now you can secure short-term health insurance for up to a year.

Again, these policies are designed to protect you and your assets during the short lapses that you may have in your regular insurance coverage. An insurance agent can explain the differences in coverage and what you will be responsible for.
However, it can still protect you financially if you do have a major medical emergency. Be sure you consider all of your healthcare options before signing on the dotted line.

When Should I Get Short Term Health Insurance?

You may consider using a short-term health insurance policy if you don't have a preexisting condition and are simply waiting for your Medicare insurance policy to kick in.

Since short-term health insurance policies are so inexpensive, it may be worth the little bit of money to have peace of mind and be covered in the off chance you have a true medical emergency or health issue.