For some people, short-term health insurance plans for families are an inexpensive albeit temporary solution for those who are in between coverage options, as well as those who want to fill gaps in their primary coverage. This kind of health insurance is meant to give you and your loved ones coverage when you’re in between insurance options. It can protect you against major illnesses or accidents.
Short-term health plans are not renewable and they do not cover any pre-existing conditions. So, if you’re found to have a medical illness, you could be denied coverage. It’s also important to note that short-term coverage lacks a lot of the benefits offered by the Obamacare plans. That’s why it’s important to do your research before deciding on a short term health insurance plan to ensure it’s the right decision for you and your family.
Reasons to Get a Short Term Health Plan for Families
If you are in between insurance options or require catastrophic health coverage, you may opt to purchase short term health insurance, especially if you need it outside of open enrollment.
While short term coverage does not spare you from having to pay the penalty for being without health insurance, it does protect your finances when faced with a medical catastrophe.
A short term health insurance plan may be right for you if:
- You’re in between jobs
- You’re waiting for the next open enrollment
- You’re waiting for your employer group cover to begin
- You’re traveling outside your network area
- You’re laid off, on strike or you quit your job
- You’re a seasonal employee.
Benefits of Short Term Health Insurance
There are several common and important benefits that come with this type of health plan. These include:
- Very affordable
- Fast approval
- Coverage of 1-12 months
- Bridges the gaps during transitions
- Protects your family against possible medical catastrophes
But the downsides to short term plans may outweigh its benefits. To begin with, short term plans do not provide the health benefits mandated by Obamacare.
These plans also don’t cover pre-existing conditions and are non-renewable. Lastly, they don’t prevent you from having to pay the tax penalty unless you qualify for exemptions. In addition, when you have short term coverage, you may also be prevented from getting HIPPA or COBRA.
Short Term Insurance Plan: A Bridge to 2018?
With the high rates of individual health plans, many families are looking for short term health plans that provide them some protection while being affordable.These plans are available in most parts of the United States except in New Jersey, New York, Rhode Island, Vermont and Massachusetts but they vary significantly.
Obamacare has certainly made it a lot easier for most of us to get insured and the uninsured rates have dropped considerably. The law has done an excellent job in providing citizens with substantial financial assistance in the form of premium subsidies and cost-sharing subsidies.
However, there are still situations when getting short term health plans make sense, particularly when you’re in a situation where you have to choose between being uninsured and getting a short term health coverage. That’s why it’s important to weight the benefits and downsides of a short term plan to decide if it’s right for you and your loved ones.