Short Term Health Insurance
Filed Under (Short Term Health Insurance) by Group Health Insurance on 09-07-2009
Tags: Short Term Health Insurance, short term health insurance new, short term health insurance plan, short term health insurance plans, temporary health insurance, temporary health insurance coverage
Many insurance carriers are reporting that they are seeing a sharp increase in the issuance of short term health insurance policies.
What is Short Term Health Insurance?
Short term health insurance plans (also called temporary health insurance), offer coverage for major hospital, medical, and surgical expenses. It really is aimed at healthy individuals and families as it does not cover pre-existing conditions. These plans offer a temporary solution to a short-term insurance gap.
Most plans last one to six months and can be renewed for a total of 36 months. Thus, unlike traditional health insurance plans, these plans have an expiration date.
Pre-Existing Conditions:
As noted above, these plans do not cover pre-existing conditions. Pre-existing conditions are normally defined as any condition you had during the 36-month period prior to the start of coverage. This 36-month period is called the “look-back” period and while the typical is 36 months, this period can vary from state to state. Your insurance agent can tell you what laws apply in your state.
What Do These Plans Cover?
Typically, coverage is provided for daily hospital room and board, miscellaneous hospital services, surgical services, anesthesia services, in-hospital services, and out-of-hospital care. As with standard health plans, payment for these health care expenses is subject to any deductibles, rate of payment provisions or other limitations and exclusions outlined in the policy.
Who Are Short Term Health Insurance Plans For?
Individuals who are temporarily out of work and have lost their group coverage and do not want COBRA.
Employees who are newly hired and have a waiting period before they are eligible for their company’s group health plan.
Recent college graduates or others who have lost dependent status and are no longer eligible to be included on their parent’s plan.
People waiting to qualify for a standard health insurance policy.
People on strike, military discharge and early retirees or anyone else who is temporarily without insurance for some other reason other than the reasons listed here.
The Downside of Short Term Health Insurance:
As we’ve already discussed, it does not cover pre-existing conditions. So, it is important to answer the health questions on the application honestly. Otherwise, you could wind up with a denial of any treatment related to any pre-existing condition.
Also, these policies have an expiration date. If you don’t obtain traditional coverage by the end of the plan term, you may need to apply for another short term policy. That sounds okay right? And it is okay as long as you didn’t have any medical services during the term of the first temporary plan.
If the short term plan has paid for any medical services, these become pre-existing conditions when you apply for a new temporary plan. So, if you need continued medical services related to the primary event, the new policy will not pay for those costs.
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