Short Term Health Insurance

A college student gets a phone call from mom that sends him or her into a panic–the medical card in their wallet will not be valid after graduation. A worker finds out the company will begin laying people off. For those unfortunate people caught without insurance, there is a solution: short term health insurance. Graduating students and adults out of work are the largest groups of people needing this benefit.

What is Short Term Health Insurance?

Short term health insurance is medical insurance that usually has a maximum time frame of twelve months. It covers hospitalization, doctor visits, prescriptions and most other things typically covered by long term health insurance. Premiums are usually cheaper than long term health insurance, especially for those in their twenties. Most plans have a deductible that must be satisfied prior to policy paying. These can range anywhere from a few dollars into the thousands depending upon the plan chosen.

Unlike most long term policies, short term health insurance does not usually require participating in a preferred provider network (PPO). This allows the patient to choose their own doctor and hospital.

Differences Between Traditional and International Medical Insurance

As with most insurance policies, short term insurance does not cover pre-existing conditions. Pregnancy, maternity, and preventive care are also common exclusions. Once the policy expires, it sometimes will not be renewed. Anyone with high risk occupations or chronic conditions may not qualify for coverage.

Until the deductible is satisfied, doctor visits may require payment by the patient. Most companies only have one deductible per year. Some short term health insurance policies require a deductible per illness. If someone has chosen a high deductible, this can add up to a lot of money out of the pocket book.

While offering many advantages, anyone considering purchasing a short term policy should have a qualified professional carefully explain the benefits and exclusions before choosing a policy.