Differences in Short-Term Health Plans

Are All Short-Term Health Insurance Plans the Same?

Short-term health insurance provides temporary medical coverage if you lose your coverage due to job loss, disability, or another event. Many short-term health plans vary greatly from traditional medical plans. Short-term plans also vary depending on the carrier. Read below to learn more about the differences between short-term health insurance plans and tips for selecting the best policy.

What Is Short Term Health Insurance?

Short-term health insurance is a plan that provides you with temporary coverage outside enrollment periods, between policies, or in an emergency. While all plans offer temporary coverage, the features vary depending on the carrier. 

Differences in Short-Term Health Plans

The coverage period and benefits vary depending on the carrier, monthly premium, and the plan you choose. 

Coverage Options 

Short-term plans vary widely in the level of coverage offered. Many plans provide at least some coverage due to illness and injury. The covered expenses may include hospital stays, surgical procedures, doctor's visits, and medications. However, most plans have a hospitalization expense cap, and some do not cover preexisting health conditions. Check your policy for exclusions and maximum coverage levels before enrolling. 

Monthly Premiums 

Monthly premiums for short-term health plans also vary. Health plans with low deductibles and comprehensive coverage will cost you more per month. However, you can expect to pay a lower monthly premium than traditional health plans. Temporary plans with moderate coverage levels and high deductibles are typically more affordable. Most temporary plans also require coinsurance, but these amounts vary depending on the policy. 

Maximum Coverage Limits

Most short-term health plans place a cap on the medical expenses they will cover. Maximum coverage levels depend on your plan, monthly premium, and the carrier. Most health policies will pay at least $100,000 worth of covered expenses over the life of the policy. The most expensive plans pay up to $1 million. 

Provider Networks

Some short-term health plans only allow you to visit doctors and hospitals in a specific provider network. However, most temporary plans do not limit the medical professionals you can see. Check to see if your doctor is in-network with your health plan before enrolling. Be prepared to see a new doctor if you do not check the service providers before signing up. 

What Are the Pros and Cons of Short-Term Health Insurance?

Are you considering a temporary health plan? There are many advantages to enrolling in one of these plans. Here are some of the pros to consider: 

• Created to fill temporary coverage gaps if necessary
• Coverage can be easily canceled without fees or penalties
• You can choose a coverage period ranging from a month to a year 
• Many coverage levels and policy features are available 

If you suddenly lose your health coverage, it is a good idea to enroll in a short-term plan. A temporary policy can provide peace of mind and help you avert financial disaster in case of an unforeseen illness or accident. 

Many employers offer traditional health plans to workers, or you can purchase your own policy through the health insurance marketplace. However, temporary plans are not for everyone. They do not provide comprehensive coverage and are not adequate for those with significant medical needs. You should look for a permanent health plan if you have a medical condition or take lots of medication. 

Tips for Selecting a Short-Term Health Insurance Plan

Not all short-term health plans are the same, and it takes a lot of research to find the best policy. Follow these tips to choose the best plan for your needs:

1. Look For a Plan That Fits Your Lifestyle

Consider your health needs and examine your lifestyle before you choose a plan. Prioritize your and your dependents' health and choose a plan that meets your most important requirements. If you are on a tight budget, choose a policy with a high deductible and a moderate coverage level to keep your monthly payments low. If you take a lot of medication or have a preexisting condition, you should pick a plan with more comprehensive coverage. 

2. Read Plan Details and Exclusions 

When researching health plans, read the policy brochure for information on coinsurance costs, coverage limits, premiums, deductibles, and exclusions. Do your best to anticipate your medical needs and choose a plan that is affordable while still providing sufficient coverage. For instance, many short-term plans do not offer coverage for maternal care. Choose a plan that covers prenatal care if you are pregnant or plan to become pregnant. 

Work With Sackett & Associates Insurance Services

Are you looking for a individual health plan? Look no further than Sackett & Associates Insurance Services. We specialize in providing insurance services to families, individuals, and groups. We have been providing insurance services for over 40 years, and we specialize in all health insurance plans and options. Contact us today to receive a personalized quote for your unique situation.