5 Reasons Short-Term Insurance Plans Are a Smart Choice

By Hetal Bansal

Short-term insurance plans, also known as temporary health insurance or gap coverage, provide coverage for a limited period, usually up to six months. These plans are designed to provide individuals and families with temporary coverage in case of unexpected medical emergencies or during a transition period, such as between jobs. Short-term insurance plans typically offer lower premiums compared to traditional health insurance plans, but they may have limited coverage and higher out-of-pocket costs. It is important to carefully evaluate the benefits and limitations of short-term insurance plans before enrolling to ensure that they meet your specific needs and budget.

5 Reasons Why Short-Term Insurance Plans Are a Smart Choice

1. Lower premiums: Short-term insurance plans typically offer lower premiums compared to traditional health insurance plans. This can be a smart choice for individuals and families who are looking for temporary coverage and want to save money on their health insurance premiums.

2. Flexible coverage options: Short-term insurance plans offer flexible coverage options that allow individuals and families to choose the coverage that best meets their needs. For example, short-term insurance plans may offer coverage for doctor visits, hospital stays, emergency room visits, and prescription medications. This flexibility allows individuals and families to choose the coverage they need without paying for coverage they don't need.

3. Quick and easy enrollment: Short-term insurance plans offer quick and easy enrollment, with coverage typically starting within a few days of enrollment. This can be a smart choice for individuals and families who need coverage quickly, such as during a transition period between jobs.

4. Wide range of providers: Short-term insurance plans often have a wide range of providers, which can be a smart choice for individuals and families who want to keep their current providers or have access to a wider network of providers.

5. Affordable out-of-pocket costs: Short-term insurance plans typically have higher out-of-pocket costs compared to traditional health insurance plans, but these costs are often more affordable than the out-of-pocket costs of being uninsured. This can be a smart choice for individuals and families who need coverage but want to keep their costs as low as possible.

While short-term insurance plans can be a smart choice for certain individuals and situations, it is important to carefully evaluate the benefits and limitations of these plans before enrolling. Short-term insurance plans typically have limitations such as exclusions for pre-existing conditions, limited coverage for certain services, and higher out-of-pocket costs compared to traditional health insurance plans. It is important to consider these limitations when deciding whether a short-term insurance plan is the right choice for you.

In addition, short-term insurance plans do not meet the requirements of the Affordable Care Act (ACA) and do not qualify as minimum essential coverage. This means that individuals who have short-term insurance plans may still be subject to the individual mandate penalty for not having minimum essential coverage. It is important to consider this penalty when deciding whether a short-term insurance plan is the right choice for you.

Short-Term vs. Long-Term Insurance Coverage: Which is Better?

Duration of Coverage: The most significant difference between short-term and long-term coverage is the duration of protection they offer. Short-term coverage is suitable for those who require coverage for a brief period, such as between jobs or during a period of transition. Long-term coverage is more appropriate for those who require continuous protection for the foreseeable future.

Flexibility: Short-term insurance plans offer greater flexibility than long-term plans. Short-term policies can be customized to suit specific needs and budget constraints. Long-term policies, on the other hand, have fixed terms and benefits, and it is not easy to make changes once they are in place.

Cost: Short-term insurance plans are typically less expensive than long-term policies. Short-term plans are ideal for those who need coverage for a limited period but do not want to pay high premiums. Long-term policies, however, offer more significant benefits and are more expensive.

Health Requirements: Long-term insurance plans generally require applicants to undergo a medical examination before approval. Short-term policies, on the other hand, do not have such requirements, making them ideal for those who may have health issues that could affect their ability to obtain long-term coverage.

Coverage Benefits: Long-term policies offer a wider range of benefits than short-term plans. They provide comprehensive coverage that includes medical, dental, vision, and disability benefits, among others. Short-term policies, on the other hand, provide limited coverage that may only cover certain medical expenses.

Best Short-Term Health Insurance 2023

UnitedHealthOne: UnitedHealthOne offers a range of short-term health insurance plans with different deductibles and coverage options. These plans are available in most states and offer coverage for up to 364 days. UnitedHealthOne's plans also include telemedicine services, prescription drug coverage, and a variety of wellness benefits.

Pivot Health: Pivot Health offers short-term health insurance plans that provide coverage for up to 364 days. These plans offer flexible deductibles and copay options, making them ideal for those who need coverage for a specific period. Pivot Health's plans also include telemedicine services, prescription drug coverage, and coverage for mental health services.

National General: National General offers short-term health insurance plans with coverage periods ranging from 30 to 364 days. These plans offer different deductible and coinsurance options, making them suitable for a variety of budgets. National General's plans also include telemedicine services and prescription drug coverage.

Agile Health Insurance: Agile Health Insurance offers short-term health insurance plans with coverage periods ranging from 30 to 364 days. These plans provide flexible deductible options and offer coverage for a range of medical services, including doctor visits, prescription drugs, and emergency care.

HealthInsurance.net: HealthInsurance.net offers short-term health insurance plans that provide coverage for up to 364 days. These plans offer flexible deductibles and coinsurance options, making them ideal for those who need coverage for a specific period. HealthInsurance.net's plans also include telemedicine services and prescription drug coverage.

Conclusion

Short-term insurance plans can be a good option for individuals and families who need temporary coverage during a transition period or unexpected medical emergency. While they typically offer lower premiums compared to traditional health insurance plans, they may have limited coverage and higher out-of-pocket costs. It is important to carefully evaluate the benefits and limitations of short-term insurance plans before enrolling to ensure that they meet your specific needs and budget. Additionally, it is important to note that short-term insurance plans do not qualify as minimum essential coverage under the Affordable Care Act (ACA), and therefore may not meet the requirements of the individual mandate.