5 Misguided Myths About Short Term Health Insurance

Category: Short Term Originally Posted: February 17, 2015 by HealthCare.com Staff Last modified: September 12, 2016

What is short term health insurance?

When you’re in between long-term, major medical insurance plans, you pay 100 percent of your healthcare costs. Unfortunately, sudden illnesses, broken limbs and other situations that require immediate and costly medical attention won’t wait until a more convenient time. A short term health insurance plan can be a wise way to protect your finances in the meantime.

However, there are a lot of myths surrounding short term health plans that can seriously downplay their value. We’d like to dispel some of the most common misconceptions about temporary coverage and show you why it’s an essential the next time you experience a gap in benefits.

Call  (877) 626-1943 to learn more about short term health insurance.

1. Short term health insurance has a limited network of doctors.

Consumers fear paying for health insurance coverage that doesn’t include conveniently located providers, and with good reason. Who wants benefits they can’t easily use? But short term plans have a reputation for flexibility.

Most short term coverage allows you to choose your healthcare provider—and nearly all doctors accept short term health insurance plans. Before you receive care, check with the provider to be sure your insurance is accepted and check with your plan to see if there are any restrictions.

Some short term health insurance plans include preferred provider organizations, known as PPOs, which will provide greater benefits for care received in-network. If you go out of network, you may pay more.

2. Short term health insurance costs the same amount as permanent health insurance.

Don’t fall for this fallacy. You will most likely pay far less for short term health insurance coverage. Monthly premiums tend to be half the amount of major medical insurance, often less than $100 per month. Get a quote and see for yourself.

3. There is a 15-day waiting period before coverage begins.

Waiting periods and short term health insurance do not belong in the same sentence. These plans were made for immediacy. Short term health insurance coverage can begin as soon as the very next day—and, of course, later if you have another date in mind.

You can apply and enroll in just a few minutes at HealthCare.com. Plus, you can tailor the policy length to your needs. Coverage lasts as few as 30 days and as many as 364 days, depending on your state. If you reach the end of your policy and still need temporary coverage, you may be able to enroll in another policy right away.

4. Short term health insurance coverage is the same as an Obamacare plan, just for less time.

The difference between short term health insurance plans and long term, major medical insurance plans lies beyond policy length. Short term plans are not comprehensive coverage. They are designed to offer some financial protection from unexpected medical bills resulting from accidents and illnesses—the kind of medical bills that can be hard hitting. Covered care may include emergency care, surgical services, and hospital care, among others.

Short term plans are not compliant under the Affordable Care Act, are not guaranteed issue (meaning, companies can chose not to insure you if you have a pre-existing condition), and do not fulfill the “shared responsibility provision,” which requires most Americans to have health insurance. The law allows a single period of up to three months without qualifying, permanent coverage; after that, tax penalties may apply.

However, short term health insurance can be a great solution when you are in between Obamacare plans—that month or two when you are uninsured and financially vulnerable. If you recently moved, need coverage during an employer-based plan’s waiting period, are in-between jobs, just got divorced or are in any other situation that leaves you temporarily uninsured, a short term health insurance plan can offer peace of mind.

And, if you qualify for an exemption from minimum essential coverage due to hardship or other circumstances, a short term health insurance plan can be a low-cost solution to ensure you have some protection from unexpected medical bills.

5. Short term health insurance is just high deductible health insurance with no copays and not much coverage.

Nope. Not true. Short term health insurance plans include a wide range of benefits for emergency care, surgical services, hospital care and more. Coverage-period maximums may run from $750,000 to $2 million, depending on the plan you choose.

You also have plan design options when buying short term coverage. Deductibles range from as low as $1,000 to as high as $7,500. The general rule of thumb is: the lower your deductible, the higher your monthly premium; the higher your deductible, the lower your monthly premium. Coinsurance, copays, and out-of-pocket limits vary by plan.

To get a quote for short term insurance, give us a few details about yourself so we can provide you accurate pricing information in minutes. Or call 844-632-6844.