The phrase Short-Term Health Insurance is both accurate, as it this policy only provide coverage for a short time, and a bit confusing since it implies that it is a shorter version of Long-Term Health – which isn’t exactly accurate.
Long-Term Health Insurance, often called Major Medical Insurance, is renewable and offers comprehensive coverage options designed for people to keep the same policy for many years. These plans are medically underwritten, which could require you to answer health questions to determine eligibility.
Short-Term Health Insurance, also called Temporary Health Insurance, typically provide coverage for one year or less, and are not meant to be renewed. However, this is not the only difference between long-term and short-term plans.
Monthly premiums for short-term health insurance plans are typically significantly less expensive than their major medical counterparts - plans cost an average of 31.5% less. This is because they can be customized to fit your needs and your budget, meaning you don’t pay for coverage you don’t need.
Covered expenses for temporary health insurance plans generally include the high-dollar, unexpected care and treatment you may require as a result of an illness or injury – from a serious medical event like a heart attack or stroke to a broken leg or doctor’s office visit due to illness. However, they often exclude long-term conditions such as mental health, maternity, preventative care, and pre-existing conditions.
When Does It Makes Sense
When determining if a short-term insurance plan is right for you, the main thing to consider is your access to long-term care. If you participate in the ACA Marketplace coverage you are likely aware that you can only apply for coverage during open enrollment or following specific life events. If you cannot access major medical coverage having a short-term policy is highly recommended until long-term coverage can be obtained. Many find that short-term insurance is more economical when between jobs as COBRA tends to much more expensive.
If you are considering a short-term plan you can reach out to Kim Mondus, our in-house health insurance specialist with any questions, concerns, or to apply.
Life & Health Manager