Is Short Term Health Insurance Real Insurance Coverage?
Short term health insurance claims to be an alternative to COBRA benefits because it costs so much less. Many people compare the two and say there is no way that the temporary insurance plans are legitimate because they cost so much less. The main thing that people need to do when considering a temporary medical policy is contact the state’s department of insurance to ask them about the company offering the policies. If it is a reputable company, they will have gone through the approval process to ensure compliance with all the rules and regulations that every insurance plan has to go through.
Most people shop for short term medical insurance when they have been offered COBRA from a job they just left. Generally when people are between jobs, they need every penny to go to necessities of living. So when they get a COBRA bill they were not expecting, they panic and look for alternatives.
Health Insurance – Temporary Health Insurance Coverage
Most of us go through a time in our lives when we may need temporary health insurance coverage. For example if you are in between jobs or are a recent college graduate and no longer covered through your parents plan.
Temporary health insurance fills a gap until you can get a long term plan started. Generally the coverage does not include preventive care like physicals or immunizations, but rather it provides protection in case of an accident or serious illness.
The rates for temporary health insurance are usually inexpensive compared to an individual plan and in general the coverage lasts for 6-12 months. Usually temporary health plans pay out far less than a full policy and will also cover less, but the premiums are lower as well. Depending on the option you choose, the insurer may not pay for surgery, blood work, x-ray, or hospitalization costs.
Are You Are in Need of a Temporary Health Insurance Plan?
If you are in need of a temporary health insurance plan to get coverage for a certain period of time which is a gap between health plans as a person is changing jobs, being laid off or waiting to be employed after graduating it is best to look for the best option. A temporary health plan can be for a period of a few months or just over a year. This is generally not for routine medical examinations and preventive health care and is often geared to cover medical emergencies that may occur during the gap between more permanent healthcare insurance plans.
A temporary health plan can often turn out to be cheaper and more flexible than normal health plans. But, this may be due to less coverage and or payment for services both of which can turn out to be costly. Typically, deductible amounts are low and should be checked out.