Short-Term Health Insurance
In most states, private health insurance providers offer short-term, or temporary, plans to accommodate the unemployed. If you need insurance for a period under one year, these plans may work for you. The annualized rates for short-term health insurance plans are usually higher than their long-term equivalents. However, some short-term plans are actually cheaper than COBRA.
Short-term health insurance plans are not designed to be comprehensive. They are designed to cover you in the event of an unforeseen injury or illness, but not for routine or preventative services. Coverage typically caps between $1 million and $2 million, and pre-existing conditions are often exempt. The following are typically NOT included:
- Preventative care (immunizations, etc.)
- Dental
- Vision
- Routine services (check-ups, physicals, etc.)
- Maternity care
Furthermore, short-term plans are not subject to Health Insurance Portability and Accountability Act (HIPAA). As such, the provider is not obligated to renew your policy when it expires. This means that if you get seriously injured, your provider can drop your coverage as soon as your contract ends.
On the upside, application processes are often streamlined and you can begin coverage in in as little as 24 hours. Most plans, due to the exclusion of pre-existing conditions and the short time horizon, do not even require a physical examination.
Not all states allow plans like these to be sold. Many of the large providers in your area will offer short-term policies. Assurant, HPA, Blue Cross, and United Health are among the biggest.
