Temporary Health Insurance

Temporary Health Insurance Options

In our assessment, Everest and UnitedHealthcare emerge as the leading performers in short-term health insurance.

To pinpoint the top short-term health insurance providers, we performed an extensive assessment, considering factors like average expenses, coverage choices, and customer grievances among various insurers.

The top Temporary Health Insurance companies in 2024

  • Everest is the top pick for short-term health insurance, praised for its affordability and minimal out-of-pocket expenses.
  • UnitedHealthcare is the preferred choice for short-term health insurance, and it is known for its exceptional coverage and extensive benefits.

Short-term health insurance provides an affordable option for individuals managing job changes, self-employment, moving from parental coverage, waiting for Medicare eligibility, or needing coverage until open enrollment for an Affordable Care Act (ACA) plan.

While short-term health insurance premiums are typically affordable, it’s essential to understand that this type of coverage may not offer the comprehensive benefits of high-end health insurance plans. Additionally, obtaining treatment with short-term medical insurance could result in significant out-of-pocket expenses.

What is Temporary health insurance?

The National Association of Insurance Commissioners (NAIC) defines short-term health insurance as a temporary type of health coverage that provides limited benefits, ranging from one month to three years.

Although short-term health insurance plans may provide similar healthcare coverage to Affordable Care Act health insurance policies, it’s crucial to understand that they do not comply with ACA standards.

Consequently, these plans might not include the ten essential health benefits in ACA, such as pregnancy and newborn care, mental health and substance use disorder services, or prescription drug coverage.

How long does Temporary health insurance last?

In 2018, the Trump administration extended the duration of short-term health plans, allowing them to be renewable for up to three years.

However, in July 2023, the Biden administration introduced a proposed rule to limit short-term insurance plans to a maximum of three months, with the option of renewal for an extra month.

If the new rule is officially implemented, upcoming short-term health insurance policies will be limited to initial terms of three months or less.

Temporary health insurance laws by state

  • Alabama:       Up to      three years
  • Alaska:           Up to      three years
  • Arizona:         Up to      three years
  • Arkansas:       Up to      three years
  • California:                     Banned
  • Colorado:                     Banned
  • Connecticut:                 Six months
  • Delaware:                      Three months
  • District of Columbia:    Three months
  • Florida:          Up to     three years
  • Georgia:        Up to     three years
  • Hawaii:                         Banned
  • Idaho:           Up to       three years
  • Illinois:                          Six months

Who can get Temporary health insurance?

Residents of states offering temporary health insurance plans can apply for short-term coverage. However, unlike Health Insurance Marketplace plans, eligibility may be influenced by your current health condition.

The application process for short-term health insurance involves answering health-related questions. These answers help the insurance company assess the risk of insuring you. Your application might not be approved if your responses suggest existing medical conditions.

Readmore Health Insurance Plans and Benefits March 2024

If your application is approved and you file a claim for health benefits, the insurance provider will review your medical history. If they discover that a pre-existing condition is a factor in your health issue, your claim may be denied, and your policy could be canceled.

How do you qualify for Temporary health insurance?

To qualify for temporary health insurance coverage, meeting medical requirements is crucial. Additionally, this option is only available to residents in states that offer limited-duration plans.

In contrast to the application process for traditional health insurance plans, which usually require enrollment during specific periods such as open enrollment or special enrollment with a qualifying event, individuals can apply for short-term health coverage anytime.

How much does Temporary health insurance cost?

Our rate analysis shows that the average monthly cost for short-term health insurance is $208. The costs associated with short-term medical insurance are affected by several factors, including:

  1. Your age.

  2. This includes coverage for a spouse or dependent(s) and their respective ages.

  3. Specific coverage details you choose, such as deductible, coinsurance, and total policy coverage.

  4. The smoking and health status of all individuals covered under the policy are taken into account.

Before purchasing, it’s essential to thoroughly review the details outlined in the terms and conditions of a short-term health plan.

What does Temporary health insurance cover?

Short-term health insurance plans are not required to follow federal regulations mandated by the ACA, so the extent of coverage can vary significantly between plans.

Short-term health policies might include:

  1. Visits to the doctor’s office.

  2. Emergency room visits.

  3. Preventive care.

  4. Urgent care services.

It’s important to thoroughly compare different short-term plans and carefully review each policy to understand the inclusions and exclusions. This helps you find a plan that meets your specific needs.

What does Temporary health insurance not cover?

Traditional health insurance plans often cover maternity care, substance abuse treatment, and mental health services. In contrast, short-term health insurance policies typically do not cover these medical services.

Dr. David Berg, CEO and co-founder of Redirect Health, notes that pre-existing conditions, chronic conditions, long-term care, certain surgeries, and treatments are commonly excluded from temporary coverage plans.

Redirect Health

It’s essential to pay attention to prescription drug coverage. Some short-term health policies may include prescription coverage, while others may not.

In situations where prescriptions are not covered, some insurers may provide a discount card as an alternative. While the insurer doesn’t cover medication costs, the discount card can help in getting lower prices for prescription drugs.

How to find the ideal temporary health insurance for your needs

When looking for the best short-term health insurance, consider the following factors:

  1. Assess your coverage needs: Consider pre-existing conditions, prescription drug requirements, and expected medical treatments
  2. Research insurance companies: After identifying your coverage needs, seek reputable providers with positive customer reviews,” recommends Evan Tunis, President of Florida Healthcare Insurance.Companies with excellent financial strength ratings, such as Everest and UnitedHealthcare, with an A+ rating from AM Best, demonstrate a solid ability to fulfil claims.
  3. Compare plan details: Dr. Berg suggests comparing the coverage, costs, deductibles, and exclusions of different short-term plans to ensure they meet your needs.
  4. Consider the plan network: If you have a preferred doctor, hospital, or specific healthcare provider, check if they are part of the plan’s network
  5. Understand the plan’s limitations: Most short-term plans do not cover pre-existing medical conditions, and the exclusions may vary. Review each plan’s limitations carefully to find the best fit for your needs.

Temporary health insurance FAQs

How long is Temporary health insurance good for?

The duration of a short-term insurance plan’s effectiveness depends on the specific plan you select. Plans can vary; some offer only monthly coverage, while others extend up to three years. Typically, the longer the plan duration, the higher the cost.

Who needs Temporary health insurance?

Short-term insurance can be crucial in various scenarios. Short-term insurance could be a practical choice if you struggle to find affordable health insurance or lack COBRA coverage after a layoff or termination.

It can also be advantageous when transitioning to a new job or expecting eligibility for spousal health insurance, offering temporary coverage.

Furthermore, individuals under 30 or facing significant financial difficulties and unable to afford catastrophic health insurance may find short-term health insurance a suitable solution.

Leave a Reply

Your email address will not be published. Required fields are marked *