Some carriers may choose to only offer a three-month policy, with no renewal option, and there are some states that prohibit short-term policy renewals. There are also some states where there are no short-term policies available (details below). But the coverage gap continues to be a problem in the states that have not expanded Medicaid. And subsidies are also not available to undocumented immigrants, who aren’t allowed to purchase coverage through the exchange even if they’re willing to pay full price.
How Much Does Short-Term Health Insurance Cost?
- And since they do not have a contract with the short-term insurer, they are free to send a bill to the patient for whatever amount the insurance plan doesn’t pay.
- Some short term plans are available as association group insurance only to members of FACT, an independent association.
- On the other hand, its higher-end plans are among the best value for the cost.
Employer-sponsored insurance may be extended under COBRA (or a similar state program). If you’re likely to need more health care — if you have a chronic condition or a complex health history, for example, it’s important not to go without health coverage. It could cost you a bundle if you need services while you’re uninsured. Short-term health insurance can ensure you have at least some coverage but it’s smart to check your options.
Short-term insurance is not ideal for people who are uninsured for longer periods or who have more serious health care needs. These plans aren’t required to cover things that other health insurance must include, such as maternity care or coverage for preexisting conditions. The available short-term plans all have a maximum total duration of four months, including renewals under federal rules. There are several plan designs available, and although none of them provide comprehensive benefits as is the case under ACA-compliant plans, the trade-off is that short-term health insurance plans have lower premiums. Prescription drug coverage is available with some short term health insurance plans.
Short-term health plans are offered by several national companies that sell plans in numerous states, as well as regional companies that have more localized service areas, so short-term plan availability varies considerably depending on where you live. In some states, when your term is ending, you can apply for a new short term plan.4 Remember, though, this is not an extension of your first plan. Any illness or condition you develop while covered on your first plan would be considered a preexisting condition for the new plan.
Best Short-Term Travel Health Insurance: Everest Reinsurance Company
I’ve found it’s wise to call the provider or hospital to ask rather than relying solely on the plan’s provider network list. Short-term health insurance offers limited coverage for up to three months in most states, with the chance to how to convert paper stock certificates to electronic extend the plan for another month for a total of four months in a 12-month period. The federal government reduced the previous length of one year with an option of up to three years in September 2024. Some states don’t allow short-term plans or restrict the length of coverage.
- Short-term health insurance offers temporary coverage to fill a gap between other health plans.
- That said, if you lose your job and don’t typically need many healthcare services, a short-term plan could be a low-cost solution until you’re eligible for coverage from a new employer.
- Short-term health insurance plans don’t have to cover prescriptions, and you may have trouble finding one that does.
- These plans aren’t required to cover things that other health insurance must include, such as maternity care or coverage for preexisting conditions.
Short-Term Health Insurance: How It Works and Who It’s For
Check out all your options; you may be able to get better coverage for less by shopping around. As noted above, however, the termination of a short-term health plan does trigger a special enrollment period that will allow a person to enroll in an employer’s group health plan, if one is available to the person. Short-term plans also tend to use post-claims underwriting, which means they can go back through your medical history if and when you have a claim, to verify if you had any pre-existing conditions at the time of your enrollment.
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Even if you’re eligible for coverage based on the short list of questions asked on the application, you will generally not have coverage for any pre-existing medical conditions while you’re enrolled in the plan. Short-term plans are designed to provide coverage for medical conditions that have not yet arisen – and will generally not be of any use for medical conditions you already have. We found costs as low as about $100 a month for barebones coverage to over $200 a month for coverage with prescription drug coverage. Short-term health insurers may promote coverage for under $100 a month, but you want to carefully read the print to understand what is and isn’t covered by cheaper short-term plans. You can be denied coverage based on your health, unlike standard health insurance.
If you find a plan with prescription coverage like UnitedHealthcare’s Copay Select Max or Pivot Health’s Epic Base, I’d suggest making sure that your specific medications are covered. Choosing a short-term health insurance plan could be a low-cost alternative if you’re young and healthy. I would warn that you shouldn’t view short-term plans as a long-term health insurance solution since you can only have it for a limited time and it doesn’t offer nearly as much coverage as standard health insurance. However, if you’re just looking to bridge a gap and will soon have regular health coverage, a short-term health plan may work for you.
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Plans with low out-of-pocket limits, low or no coinsurance and low deductibles are available. UnitedHealthcare offers a wide range of options to suit different needs, form the cheapest and the most expensive. A short-term health plan can also bridge a gap in coverage if you’re newly employed and have a waiting period of up to three months before you’re eligible to enroll in your employer’s health benefits plan. These plans can be attractive to people who are facing a gap between other health insurance policies, without an option to enroll in ACA-compliant coverage during that time.
Independence American Insurance Company is the best option for short-term coverage without an application fee. It’s wise not to go globetrotting, or even across state lines, without health insurance. If you need short-term coverage while traveling, Everest Reinsurance Company may offer the right plans for you. UnitedHealthcare offers a wide range of short-term plan options, making it more likely you’ll find one that works for you.
Narrow down your search based on your needs and preferences and start with options that fit your criteria. If you take medications, it can be crucial to have health insurance. Even generic drugs can be expensive if you have to pay for them in cash. But you’ll want to make sure your insurance covers your prescriptions. Your deductible is the portion of expenses you have to pay before the insurance will pay anything.
You may get better coverage for less money (or not that much more) with subsidies on Healthcare.gov and the state health insurance marketplaces. But, if you have a temporary gap in coverage and no other options, they can help you avoid being exposed financially if you need health care services. UnitedHealthcare earned MoneyGeek’s top ranking among short-term health insurance plans for having the most plans, more coverage for the cost, lower deductibles, low coinsurance and low out-of-pocket limits.
COMPANY HIGHLIGHTS
We analyzed short-term health insurance rates, coverage maximums, deductibles and other metrics. Our editors are committed to bringing you unbiased ratings and information. You can read more about our editorial guidelines and the methodology for the ratings below. Short-term health insurance may be tempting because it can seem cheaper than buying coverage. But it may not be your best value, because there are so many ways to get health insurance even without a job or income.
But making an educated guess about how much health coverage you’re likely to need and for how long can help. For example, if you know you’re starting a new job in a few months, short-term health insurance can give you peace of mind in that gap. But if you’re on a job search and unsure when it will end, choosing the wrong short-term plan could leave you exposed if that search lasts longer than you expect. Although premium subsidies are not available for short-term policies, the plans do tend to be considerably less expensive than ACA-compliant major medical plans if you’re not eligible for a premium subsidy. The trade-off is that short-term plans don’t provide as much coverage as an ACA-compliant plan, won’t cover pre-existing conditions, and can reject your application based on your medical history.
