If you are suddenly handed the pink slip, you might have enough saved for your day-to-day expenses. However, with your job, employer-sponsored health insurance goes too, which might be a bigger worry for you. Short term health insurance may provide you with just the coverage you need during this tough time.
Short term medical insurance is ideal for those who are recent graduates, in between jobs, waiting for employer insurance to kick in, and part-time employees. Early retirees can also purchase COBRA insurance alternatives to tide over the period before Medicare benefits can be availed.
Usually, when one loses his/her job, COBRA insurance is offered as an option. COBRA insurance offers health insurance with long term health benefits, but at a higher rate than employer-sponsored insurance and sometimes, temporary health insurance as well. That makes temporary health insurance a very desirable option.
Unlike long term health insurance, signing up for a temporary health insurance plan is quick and easy, and coverage can even begin within 24 hours. Being temporary coverage, health insurance for unemployed plans do not cover previously existing conditions.
Short term insurance covers most sudden medical illnesses and accidents. Plans usually include coverage for outpatient care, hospitalization, diagnostic tests, surgery, and ambulance charges. Doctor visits are also covered by most plans, subject to the applicable deductible and co-pay.
As with any temporary plan, short term health insurance does not cover pre-existing conditions, pregnancy, cosmetic surgery, and eye and dental care.
Short term insurance plans come in many flavors, and each plan usually features many deductibles and co-pays to choose from. Plan premiums also depend on the maximum coverage chosen, so that different folks can choose different plans that work for them.
When you purchase temporary health insurance, you might be tempted to continue on it for a long time. However, it is designed for short periods, and you must ideally not exceed a year or so in short term coverage. If your insurance situation is uncertain, you can renew the plan monthly, for the maximum period specified in the plan.
Dan Miller enjoys writing about temporary health insurance