Getting Short Term Health Insurance.
Because of several recent government changes, temporary health plans, also known as short term health insurance, is proving to be a very attractive option for those who are need of affordable health care coverage. 2020 has been a year in which a lot of consumers are discovering that a traditional health insurance plan is simply not an option. The reason has been, and continues to be, affordability. The monthly premiums associated with traditional health insurance are unattainably high for an ever-growing percentage of Americans. Conversely, a short term plan can often meet a family's health insurance needs while being more reasonably priced. Also, short term health insurance plans are not so "short" anymore. In some states, you can purchase a short term health insurance plan and keep it for as long as three years. Visit Newplanoptions.com to see plans and receive an instant price quote for where you live.
What Exactly is Short Term Health Insurance?
The first thing we want to do is define what short-term health insurance is. There are two parts to this: What short-term insurance was, and what short-term insurance is now.
Initially, short term health insurance was designed just for short term situations. As the name implies, it was a health insurance plan with a short term duration, which ranged from several months to a year. This type of insurance was for individuals who needed temporary medical insurance or could not afford traditional health insurance. It was used mostly by employees who frequently changed jobs, employees waiting for their group health insurance plan to kick in, students going out of state to college, or young adults searching for their own insurance because they were no longer covered under their parent's plan.
Insurance coverage was strictly for hospitalization. Doctor visit benefits, preventative services, or prescription drug benefits, were unheard of.
Things have changed. Some short term health insurance plans now offer doctor visit copay benefits, preventative services, prescription drug benefits, and more. There are now short term plans that can be held for up to three years before a new application is needed. The benefit structure is starting to look a lot like traditional health insurance plans.
Consumers have noticed. Short-term health insurance is becoming an ideal health insurance solution for a growing number of U.S. families.
Keep in mind, short term health insurance is not for every circumstance. Short term policies often lack several benefits that are guaranteed for health plans under the umbrella of the Affordable Care Act portfolio of plans. However, There are several key advantages.
Compared with standard ACA plans, which can run even healthy individuals around $400-plus dollars every month, short-term health insurance plans average less than $100 a month, with some options being as low as $70-$80.
Of course, the amount of coverage offered depends on the price. You obviously won’t get the same amount of coverage with even a more-expensive $100 plan as you would with an ACA option. This is why short-term health insurance plans are being increasingly sought by healthier individuals who don’t require all the coverage mandated by the ACA.
For individuals, especially, short-term health insurance plans offer a nice way out of one-size-fits-all healthcare packages with exorbitant premiums. It’s recommended that you look at each plan in detail to make sure you are getting the coverage you need for your individual situation.
Under the law, these short-term health insurance plans are now renewable. Individuals seeking a refuge from high ACA premiums can do so for two-to-three years under current policy. Though this ultimately does not satisfy long-term demand, it provides a medium-range option that may prove more viable than traditional ACA plans for individuals or families who don’t qualify for government subsidies.
Most companies will allow individuals to renew existing plans without changes. This means customers can enjoy up to three years of medical insurance with the plans they choose.
Unlike traditional insurance plans, short-term insurance plans require no open enrollment. Those seeking these plans simply need to sign up and be approved to gain nearly instant access to medical coverage. Typically, short-term insurance plans begin coverage within one to fourteen days of being approved, whereas ACA plans can take between two and six weeks to go into effect.
Despite there being no set window period for enrollment, many short-term insurance companies opt to take part in open enrollment periods, if only to create awareness for their plans. If you plan on participating in this year’s open enrollment, pay attention for these companies and see if their alternative plans are right for you. If you don’t wish to wait, however, keep in mind that short-term insurance is offered year long, so you never have to worry about missing an open enrollment period.
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