To help fill in the gaps in health insurance coverage, insurance companies have rolled out what's formally known as short-term health insurance. It is simply a temporary solution for medical coverage that is only good for a pre-determined amount of time.
Many find this to be a helpful solution while they search for new insurance coverage, when they are in between jobs, or when they're trying to get their new business off the ground. Whatever the case may be, we're here to help you understand what it has to offer and whether it's a viable solution for you.
The Basics of Short-Term Health Insurance
In a lot of cases, this type of coverage is only available for a period of around 3 months, making it unable to be used after expiration. There is also no renewal options with this type of medical coverage, so if it expires and you still need insurance, you will have to enroll in a new plan altogether.
For those with pre-existing conditions, this may not be a solid option, as this kind of insurance is only meant to provide a limited amount of coverage. This means that any conditions that existed prior to enrolling will be exempt from coverage.
However, monthly premiums are usually lower than traditional health insurance options and you can still get lower deductibles. Just make sure you fully understand the coverage you choose and what it will cover to prevent any surprises.
Short-Term Health Insurance and the Affordable Healthcare Act
The Affordable Healthcare Act (also known as ACA and/or Obama Care) requires that you have health insurance or risk being penalized for not having it when you file your taxes. The penalty has been known to be high, to say the least.
With short-term health insurance, you don't qualify for any tax credits offered for having health insurance and it won't necessarily prevent you from being penalized as it's not a supported type of coverage. However, there are ways around this to ensure that you can be exempt from the penalty.
The Bottom Line on Short-Term Health Insurance
If you want insurance for you or your family temporarily, this may be the route to go. Keep in mind that it doesn't cover mental health, pregnancy, childbirth, or preventative care. It's strictly to provide you with access to a limited amount of care while you search out a better solution for the long-term.
Our mission is to help people take the stress out of buying health insurance. Feel confident by knowing that you'll have the absolute best plan that fits your lifestyle & budget. We look forward to working with you.
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