As job losses in the United States has risen to new heights, so too has the number of citizens turning to temporary insurance. For most Americans, being without health insurance simply isn’t possible, which makes short term insurance a way to affordably retain some level of coverage.
Workers who have recently taken on jobs at new employers are still sometimes faced with probationary periods that they must pass before gaining eligibility for company benefits. These periods can last from 30-90 days, and a good number of medical emergencies could arise in that time. Temporary insurance provides protection for accidents and emergencies during these windows of time.
As you consider short term coverage, be aware that it does have some limitations. Checkups for general wellness and preventative care are not available in short term medical insurance policies. These programs are simply intended to cover unforeseen medical events.
Furthermore, you will not be able to have doctor’s visits and care related to pre-existing conditions covered. It’s important to understand this when applying for short term coverage so that you’ll correctly and honestly respond to the questions found on the policy application. Pay careful attention to the policy’s restrictions as you review the plan’s terms.
As you decide what level of temporary insurance plan coverage you’ll need, think first about how long you’ll need it. It’s usually available in durations anywhere from 1-6 months, but you can also extend some policies to 12 months. Your plan administrator can offer more information. Also consider what sort of deductible you’d like to have in place, as that factor can be altered to suit your needs as well.
People who have quit or been fired from their previous job may be eligible for COBRA coverage, and as such may never even consider short term medical coverage. However, they’d be wise to weigh the pros and cons of each, because while COBRA may seem convenient, there are some significant drawbacks to it.
COBRA allows a terminated employee to retain health insurance coverage through their former employer’s provider for up to’ months. COBRA coverage can be applied to your family members as well. While this seems like a great benefit, it’s an expensive, one, with the user often having to pay 100% of premiums as well as administrative fees. The nonprofit group Families USA reports that COBRA costs can consume up to 84% of average monthly unemployment wages.
That?s a perfect example of an instance in which short term insurance makes more fiscal sense. You can decide if short term medical insurance is your family’s best option by searching for more information online or consulting your current insurance representative. After reviewing your specific situation and what corresponding levels of coverage you require, the right plan can be found for you.
Ray Sondeo often writes about short term insurance.
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