Short Term Medical Insurance: Bridging the Gap Between Coverage
You are probably hearing a lot more about health or medical insurance these days, mainly due to the 2008 Presidential election. For the most part, medical insurance isn’t the first item on our daily agenda. That is of course, unless you have a need to use it, and even more compelling, you have a need to use it, but unfortunately you don’t have it.
At any given time in the year 2007, there were approximately 47.5 million Americans without medical insurance. Included in that number were a group of individuals that I’ll refer to as the “temporary uninsured”. These are people that worked seasonal jobs, recent college graduates no longer covered on their parents insurance, people who were between jobs, others were waiting for insurance to start, people that recently completed COBRA coverage, or basically anyone that had medical insurance, but was temporarily without it until full medical insurance coverage would resume.
Let’s face it. Accidents do happen and the last thing any family wants is to be confronted with an unexpected illness or injury, while transitioning between medical insurance coverage. This is where having short term medical insurance benefits can save the day. It can literally be the difference between, business as usual, or drowning in medical debt and possibly having to file bankruptcy.
If you haven’t heard the term you may be wondering, “What is short term medical insurance?” Short-term medical insurance is just that-short term. Plans may vary by insurance company and state regulations, but basically short-term medical insurance also referred to, as temporary insurance is non-renewable. You can obtain coverage for as few as 30 days and up to a full year, depending on the state you reside in.
Short-term medical insurance benefits are intended to cover you and your family in the event of an accident, illness or injury. It covers the big stuff like emergency and hospitalization costs. It does not cover things like preventive care, well child visits, and routine exams. Short-term medical insurance also does not cover any pre-existing health conditions, such as but not limited to diabetes, cancer, heart disease, herpes, normal pregnancy or childbirth.
Prior to obtaining short term medial insurance, the application consists of five to seven questions that exclude coverage for conditions diagnosed anywhere from the prior one to five years, depending on the state and insurance company.
The best thing about purchasing short-term medical insurance is that it is quick, easy, painless and provides substantial benefits. You can do it online or visit your local insurance agent and design the plan that is right for you and your family.
First you pick the length of coverage. Depending on the company, convenient payment plans are usually an option. If you know exactly the number of days you need coverage, you can use a single payment option with the minimum of days being 30 and the maximum being a year or 365 days. Some companies offer a 6-month or monthly payment option paid with a credit card or automatic bank checking account transfer. Health insurance benefits may be cancelled at any time.
Once you know how long you want the medical insurance coverage, you next decision is to determine your coverage. First you choose a deductible, which can range from $200 to $5000. This is just like your car insurance deductible. The amount you will pay, before your insurance kicks in. The higher the deductible, the lower the insurance payment.
Next you choose what is known as the coinsurance option. This is the amount the insurance company pays after you meet your deductible obligations. It could be 100%, 80/20% (they pay 80%, you pay 20%), or 50/50% (they pay 50%, you pay 50%). Also most short-term medical insurance plans have a lifetime maximum benefit of what they will pay. This amount is usually 1 to 2 million dollars.
The benefits of purchasing a short-term medical insurance plan are what makes it so marketable. Policy owners can choose their own doctors and hospitals. You don’t have to pick a primary doctor, HMO or PPO network. You and your family can go to any licensed physician or hospital you choose. There are no co-pays. Coverage and medical benefits can start the very next day if you qualify for coverage.
Although short term medical insurance is considered temporary and non-renewable, if your need for insurance continues beyond the maximum period, a new application may be accepted if there are no significant changes in the health of those covered, and no claims were incurred under the previous short term medical insurance plan.
Short-term medical insurance is a great option for an interim insurance while your temporary situation exists. It is considered to be a creditable insurance coverage under the Federal Health Insurance Portability and Accountability Act ( HIPPA) of 1996. Don’t delay. If you are in need of a temporary medical insurance, visit your local insurance agent or shop online for a short-term medical insurance policy that will protect you and your family.