7 Things to Know About Short-Term Health Insurance

Short term health insurance provides temporary coverage to individuals and families looking for low-cost, low-coverage insurance. However, as of 2020, short term health insurance is not available in all states. California, Colorado, New Mexico, New York, Vermont, Rhode Island, Connecticut, Hawaii, Massachusetts, New Jersey, and New York do not allow the sale of short term health insurance. In other states, regulations are in place that restricts short-term health insurance. Here are 7 things to know about short term health insurance.

What is short-term health insurance?

A health plan that offers temporary medical coverage is known as short term health insurance. Short-term health insurance is often purchased when the insured and their family are between other health insurance plans because of a move, a marriage, a new job, loss of insurance due to a divorce, or because you missed open enrollment. Short-term health insurance is often purchased to protect you in the event of an unforeseen emergency, and you may cancel it at any time.

Different plans will offer different coverage periods ranging from three months to three years. Short-term health plans may require higher deductibles than traditional health insurance plans. In addition, short-term health insurance may not cover pre-existing conditions.

Short-term health insurance is subject to less government oversight, so it is very important to read the plan’s coverage and exclusions before purchasing. Standards that apply to traditional health care plans do not necessarily apply to short-term health insurance policies. For example, short-term health insurance is not required to cover the 10 essential health benefits that all Affordable Care Act (ACA) health plans are required to cover.

What does short-term health insurance cover?

Short-term health insurance varies in the same way, that regular health insurance plans vary, when it comes to coverage. Each plan is unique in what it will and won’t cover for you. However, most short-term insurance health insurance plans will provide at least some coverage for doctor visits, preventative care, urgent care, and emergency care.

Short term health insurance may also cover some prescriptions, and offer savings when you use in-network providers. Those with short-term health insurance that does not cover prescriptions should look for savings at RxSaver™ which offers coupons for thousands of prescription drugs that can reduce the cost by up to 85%.

Doctor Visits

If you get sick and need to see the doctor, your short-term health insurance will likely cover the appointment. You should expect to pay a copay, and a deductible may apply. Other plans may only pay a percentage of the cost of a doctor visit.

Preventative Care

Because short-term health insurance is designed to fill a gap between traditional insurance plans, coverage of preventative care may not be guaranteed. Refer to your plan and policy to determine if preventative care will be covered.

Urgent Care

Short-term health insurance typically covers a portion of urgent care visits, since the plans are designed for an unexpected injury or illness. You will likely be responsible for a copay, and your plan may only cover a percentage of the visit.

Emergency Care

Short-health insurance will likely cover a portion of emergency room visits and care. Short-term health insurance plans are intended to help shoulder the cost of emergency treatment while you are between traditional insurance plans.

Prescriptions

Some short-term health insurance plans will offer prescription coverage. Other plans may not offer any coverage at all. Review your plan and policy thoroughly to learn more about prescription coverage from a specific short-term health plan.

Is short-term health insurance like regular insurance?

Short-term health insurance is not like regular health insurance. You may purchase short-term insurance any time during the year, as long as you reside in a state which offers these temporary medical plans. Short-term health insurance plans do not have to comply with the Affordable Care Act, and you may be denied coverage based upon a medical questionnaire.

Does short-term health insurance cost less than regular insurance?

It depends. Generally, the premiums for short-term plans are lower because they don’t cover many of the services that are covered or partly covered by regular insurance plans. Your share of the cost can be quite high in a short-term health insurance plan. While the ACA caps your out-of-pocket costs under regular health plans, there’s no such requirement for short-term plans. Short-term plans may also have odd or subtle exclusions in their coverage.

Where do I buy short-term health insurance?

These plans are sold through many—but not all—private insurance companies. Some plans are sold through larger, more recognizable health insurance companies, but may not be underwritten by those companies.

Is short-term insurance a good idea?

Before purchasing short-term health insurance, do your homework. Make sure you know what you’re signing up for, what’s covered and what’s not. These plans vary greatly in cost and coverage. They can be a lifesaver if you need temporary health coverage until you can switch to a traditional insurance plan.