Buying health insurance is a personal decision and what works well for one person’s circumstances does not work well for another’s. That’s why AgileHealthInsurance helps consumers understand the basics of Short Term Health Insurance before they apply. An informed consumer is our best customer!
Short Term Health Insurance is major medical insurance that is creditable coverage under HIPAA and that is used for a defined period of time. In most states, the term can be 364 days (or less depending on the consumer’s preference). Short Term Health Plans are known for very inexpensive premiums. Short Term Health Insurance premiums may cost less than half of an unsubsidized premium for an entry-level Obamacare plan. Enrollees in Short Term Health Insurance plans still face the government’s uninsured penalty (the “Shared Responsibility Tax”) because the plans differ from the Affordable Care Act’s health plan requirements. Even with the penalty, Short Term health insurance can still be a better fit for a person needing transitional coverage, students including foreign students attending U.S. schools, and those for whom Obamacare is not the right fit.
Short Term Health Insurance plans are also known for their wide acceptance among healthcare providers. While Affordable Care Act plans are increasingly moving towards narrow networks with fewer doctors and hospitals serving more enrollees, Short Term Health Insurance plans have continued offering broad network coverage that includes acceptance at many top hospitals and cancer centers in the U.S.
Short Term Health Insurance typically covers many benefits including the following:
Maternity care is not covered by Short Term Health Insurance and other benefits such as drug coverage may be limited or absent. For more information what benefits are typically included in Short Term Health Insurance, see What Is Term Health Insurance?
Short Term Health Insurance plans do not cover pre-existing medical conditions. People who have had a significant health event or medical condition in the past two years also are advised to seek other forms of health insurance.
People can apply for Short Term Health Insurance throughout the year and are not limited to an Annual Enrollment Period as is the case with the Affordable Care Act. The application for Short Term Health Insurance does ask about health status and answers that indicate suboptimal health may result in the rejection of the application.
The ideal profiles for people who purchase Short Term Health Insurance include: