Short Term Health Insurance
Short-term health insurance has become an important tool for maintaining the financial security of millions of Americans during periods of life transition. The popularity of this product has grown sharply in recent years as we become a more mobile society less dependent on employer-provided health benefits.
Short-term health insurance typically offers coverage for 30 to 180 days, although some plans will cover you initially for up to 12 months. If your short-term need runs longer than the coverage, you may be able to renew the plan, but don't count on anything beyond a year.
An inexpensive way to protect from unexpected health care expenses that would probably bankrupt most people, short-term health insurance is most commonly used by people changing jobs, waiting for or coming off an employer health plan, not eligible for Medicare, students, recent graduates and self-employed individuals. The coverage is equally valid throughout the entire United States but policies are not issued in MA, NJ, NY or VT. This coverage is usually priced at less than 1/2 of the cost of regular medical insurance. The premium price is based on age, sex and location so actual savings will vary.
To keep the premiums down, short-term health insurance plans don't offer all of the benefits of permanent plans. Most won't cover treatment of a pre-existing condition (i.e. an illness or injury that has produced signs or symptoms, or for which you've received treatment, in the past five years). In addition, these plans don't cover routine medical exams, preventive care, dental or optical care, or pregnancy and childbirth expenses.
Most short-term plans will cover you in the event of an accident or a sudden illness. As you might expect with almost any health insurance plan, short-term plans may have benefit limits, and you'll be required to cover an initial deductible and to make co-payments. You'll be allowed to pick your own doctors, hospitals, or other health-care providers. You'll get coverage for inpatient and outpatient services, hospital room (including intensive care unit) and board charges, lab examinations, and X rays. These plans rarely require a physical exam, and coverage often begins as soon as the insurer receives your application and first premium payment. Applications may be mailed in or submitted over the Internet, and payments may be made by check or credit card. Check with the provider for complete information on coverage and the application process.
Short-term health insurance policies are exempt from the Health Insurance Portability and Accountability Act of 1996 (HIPPA). Insurance carriers issuing these policies don't have to guarantee their renewability, and most don't. They also don't have to waive any pre-existing condition limitations for individuals otherwise eligible for those waivers.
But despite their limitations, short-term health insurance plans can help you fill the gaps in your health insurance coverage.
Health
Health Savings Accounts
You can use this account to pay for your qualified health expenses, including expenses that the plan ordinarily doesn’t cover, such as eyeglasses and hearing aids.
Expenses paid out of the HSA that are eligible expenses under your high-deductible health plan will count toward the plan’s deductible.
