How To Evaluate A Short Term Health Insurance Plan

When reviewing a particular short term health insurance plan, keep in mind that these plans typically cover most of the same types of medical benefits that permanent policies do.  However, there are some significant differences.

For one, these plans are usually indemnity plans.  This means that you may see whatever doctors or specialists you choose, with no referrals required.  As a result, this may result in higher out-of-pocket expenses and more paperwork

Short term health insurance plans are designed to protect against unforeseen illnesses or accidents, rather than provide comprehensive coverage.  Preventative treatments like check-ups, as well as dental and optical coverage, are usually not covered. Pre-existing medical conditions and work-related injuries or illnesses are also not covered. 

While the definition of pre-existing conditions varies by state, keep in mind that short term health insurance plans exclude medical conditions that have been diagnosed or treated within the previous 3 to 5 years.  If you have a previously diagnosed or treated condition, you may want to investigate your COBRA health insurance options.

Also, even with a preexisting condition, you may still be eligible for short term health insurance coverage.  You will be subject to  exclusions meaning you would not receive any benefits as it pertains to the preexisting condition.

Short term health plans can be issued for as little as 30 days and as long as 12 months.  Most insurance companies will allow you to apply for another short term plan once your original policy expires.  However, if you are thinking you will use such coverage for more than 12 months, you should consider a permanent health plan where the benefits are more comprehensive.

Some plans allow you to choose a monthly billing option for the length of the plan.  Such an option would be advantageous since you could terminate coverage voluntarily before the set expiration date on the policy should you become covered under a permanent health plan.  However, you should not expect to be refunded any unused prepaid monthly premium.

As with any other type of insurance, it's advised that you obtain several short term health insurance quotes before deciding on any one plan.  Only by collecting this data can you make an effective comparison of the various options and decide on the one short term health insurance plan that is right for you.

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