Temporary Health Insurance: Bridging the Gap
For most individuals whose access to long-term health insurance has been interrupted, temporary health insurance may be a viable alternative even a lifeline for your budget during some of life’s common transitions.
*Who needs temporary health insurance?
The good news is that most Americans have health insurance. The vast majority are covered through their employers, with another large group, those older than 65, covered by Medicare. Another percentage buy their own individual policies. But any of these situations can change at a moment’s notice, making temporary health insurance a valuable option.
Temporary health insurance can help you bridge the gap if:
*You are between jobs due to a layoff, downsizing or simple career change
*You have just graduated college and are no longer eligible for your parents’ policy
*You are changing jobs and looking for a lower-cost alternative to COBRA
*Your temporary, part-time, or seasonal job doesn’t offer health insurance
*You’ve started a new job and are in the waiting period before employer-sponsored coverage kicks in
In any of these situations, you may be tempted to save money by going without insurance especially if your lack of coverage is only for a short time. But accidents can happen to anyone at any time, and a temporary policy offers crucial financial protection against the possibility of a large hospital bill. In addition, if you were to be diagnosed with a serious illness while uninsured, it could become very difficult to obtain long-term coverage later.
*What does temporary health insurance cover?
Temporary health insurance also called short-term medical insurance usually offers coverage that is very similar to a regular individual health policy. Depending upon your state of residence, you can apply for 30 to 365 days of coverage for physician services, inpatient hospital stays, inpatient and outpatient surgeries, prescriptions, X-ray and laboratory services, skilled nursing facility care, home health care and rehabilitation, to a lifetime maximum of up to $2 million.
Temporary health insurance plans generally offer a wide range of deductible and copayment options from which to choose, so you can pick a plan suited to your needs and budget.
*Who is eligible for temporary health insurance?
In general, healthy individuals under 65 and their dependent children through age 18 are eligible. Dependent children who are full-time students may be eligible through age 24. Foreign nationals with legal documentation who are living in the U.S. for at least one year may also be eligible.
Pregnant women, people who will become eligible for Medicare during the policy’s benefit period, and those who would likely be declined for an individual health policy are usually not eligible for temporary health insurance. These policies do not cover pre-existing conditions.
Because temporary health insurance is designed as a short-term protection against the risk of a sudden illness or injury while you are between permanent health plans, these policies also do not include benefits for preventive care, routine physicals, dental services, or vision care. Short-term medical plans are not “renewable,” per se, but you can usually apply for a new policy at the end of the original term if you need an additional short period of coverage.
*How to find temporary health insurance
Many insurance companies sell short-term medical policies. You can research many of them on the internet, where literally hundreds of websites offer information on temporary health insurance and free rate quotes. Just do your homework. Before selecting an insurance carrier via the internet, you may want to check with your state’s department of insurance to be sure the company is licensed and with the Better Business Bureau to see if any complaints have been lodged against it.
As an alternative, you may wish to ask a local health insurance agent to provide you with a quote and more information. An agent should help you compare carriers to be sure you select a company that is financially stable and has been in business long enough to give you security and peace of mind.