A short-term health plan provides coverage for basic healthcare costs for short periods and is designed to temporarily offer coverage until you purchase or become eligible for a creditable long-term health plan. In many cases, short-term health plans are less expensive than other types of health insurance plans, and you can sign up at any time.
Most short-term plans have a maximum of 12 months, though you can renew some for up to 3 years. The short-term plans cover major costs and don’t provide coverage for wellness visits or annual check-ups. Moreover, most of these plans exclude specific conditions.
In this article, we’ll take a look at why you may need short-term health coverage.
You’re in a Waiting Period
The waiting period in some jobs before a new employee qualifies for employer-sponsored health coverage may be as long as 3 months. The waiting period could also be as short as a few weeks. This depends on your circumstance; it may seem reasonable to glide through this period uninsured.
A few weeks of short-term health plan can be worth the premium, though. This is usually one-third of what a major health insurance plan premium will cost. Besides, you can customize plan details such as coinsurance and deductibles to meet your needs, and there is no waiting period to start. Short-term health plan coverage usually starts within a day after your first monthly premium.
And, after your employer health coverage starts, you can drop the short-term plan with no penalty.
You Retire Before 65 and Do Not Qualify for Medicare
Why should you risk your retirement savings paying for huge healthcare expenses? The short answer is: You shouldn’t!
You may consider purchasing a short-term health insurance plan if there is a time between your Medicare eligibility and early retirement where you are not covered. This instance occurs quite often when one older spouse is eligible for Medicare, but the other needs a health plan until they qualify for Medicare.
Once you meet your deductible, a short-term health plan will cover approved expenses. However, it is vital to know that short-term health coverage may not be an option for those with pre-existing conditions.
You Missed an Open Enrollment Period
If you put off enrolling in a health insurance plan, then before you know it, the Open Enrollment Period has ended. If you don’t have a qualifying life event that qualifies you for a Special Enrollment Period, you don’t have to wait for a year uninsured. You can enroll in a short-term health plan until a change in circumstances allow you to sign up for a major health insurance policy.
If you need more information about why you would ever need a short-term health insurance plan, contact Veritas Insurance Group to speak with a licensed and experienced health insurance expert.
