Short Term Health Insurance
What is Short-Term Health Insurance?
Short-term health insurance plans are designed to give you quick, temporary coverage during a lapse in permanent coverage. Short term coverage can last anywhere from 1-12 months. To keep it simple, it helps you get the coverage you need if you happen to be between permanent health insurance policies.
How does it work?
Changes in health insurance coverage primarily occurs during the open enrollment period. The majority of states open enrollment for Health Insurance runs November 1, 2024 - January 15, 2025. It is possible that you find yourself needing insurance outside the open enrollment period. You can enroll in an individual plan mid-year if you experience a qualifying life event. If this is the case, short-term health coverage may help you bridge the gap between coverages.
What is a qualifying event?
There are situations beyond your control that may cause you to need health insurance outside the standard open enrollment timeframe. Few basic life events below:
-Loss of current health coverage (job termination, loss of cobra, coverage from a family member ending, eligibility for Medicare etc.)
-Changes in household (recently married, divorced, someone passes away which causes you to lose your current plan.
-Offer of new benefit (Employer offers to help with the cost of coverage)
-Changes in residence
Pros and Cons of short-term health coverage
Advantages:
-Costs are competitive and can be lower than major medical plans
-Coverage can take effect quickly, usually 1-14 days
-Coverage can be customized to needs
Disadvantages:
-Limited renewals (short term plans do not automatically renew and can have limits on how often you can renew
-Limited Coverage (short term policies do not cover all of the essential health benefits
-Limited Availability (not all states or providers offer the coverage
Is it worth it?
Short term health coverage can provide fast, affordable coverage in a time of need. With its affordability it can be a great option for the right situation. It is important to note that these plans again are designed to bridge coverage gaps and are not intended to replace a long term comprehensive health insurance plan.
Have questions or need short-term health insurance coverage? We can help.