Short Term Health Insurance
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Short term health insurance is a temporary safety net for those individuals who are not covered under any basic medical coverage policy for a short and definite period. This kind of policy is most beneficial for people who are in between jobs and hence for a short period of time not covered under any group medical policy offered by the employers. Most providers offer these temporary policies for 6 months and extensions up to 3 years. Read on for information on benefits, features and disadvantages of short term health insurance. |
Apart from individuals who are in between jobs, short term health insurance is ideally suited for people, who are temporarily out of work, new hires waiting to be included in the group medical policy offered by the employer and fresh college graduates looking for employment. These temporary medical policies are also provided in accordance to the COBRA act, under which ex-employees are eligible to avail the group medical insurance discounts from their former employers. A short term health insurance policy operates like a protection plan. The main advantage is that the insured is allowed to go to a doctor of his choice. However, many plans require the insured person to acquire pre-approvals for hospitalization (apart from emergencies). In such cases, it might be difficult to get reimbursements or settlements if the pre- approvals are not obtained or documented. Another disadvantage of temporary medical coverage is that if the insured files a claim for a certain medical treatment in a policy, the related injury or illness would be considered as pre- existing conditions for any renewal of the policy. This would affect the benefits and settlement claims in the future. Short term health insurance policies are pocket friendly and are offered at lower rates than the basic medical coverage. Moreover, these policies are activated almost immediately after filing of the applications. These benefits of the short term health insurance have made it a popular choice for those individuals who cannot afford an all inclusive health plan.
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Short Term Health Insurance
