Loss of Job? Need an Alternative to Cobra?
Today we have entered a new era in Health Insurance and coverage's. We have been forced to reevaluate our financial circumstances and related abilities to pay for standard heath care. Many healthy people are benefiting from a short-term health plan because it allows for low premiums and keeps upfront cost down.
Unlike traditional health insurance plans, short term policies offer medical coverage for a limited time, no longer than 12 months.
The primary differences between short vs long term plans are outlined below to help you decide which works best for you.
1) TIME: Twelve months is typically the maximum coverage on a short-term policy with some policies require a three-month minimum. These plans are not renewable. When your coverage ends you are uninsured, you may apply for a second short-term insurance to give you longer protection. This option limits you to enrolling in two policies per year.
2) FLEXIBLE: With coverage ranging from 30 days to a year, your paying for the protection you want. If you need three months of coverage until your next employer’s medical plan kicks in, you only pay for three months. If it takes twelve months to find a job and secure insurance, you have the option. Short-term insurance offer quick application and approval. There is no need to wait for an open enrollment they are available year-round.
3) EXPENSE: Gap insurance policies offer lower premiums than long-term policies,however coverage is limited. The purpose of these policies is to protect you and your family in the event of unforeseen accidents and illnesses. Your basic medical needs and emergencies get covered.
4) PRE-EXISTING CONDITIONS: Pre-existing conditions, preventative treatments, and prescriptions often fall outside the scope of temporary insurance plans. Short-term policies do not cover pre-existing conditions, please keep this in mind when considering a gap policy. If you have a pre-existing condition weigh the cost of the insurance.
5) The Affordable Care Act (ACA): This dictates the qualities of health insurance policies and the goal is to provide affordable healthcare to all people. However, the requirements laid out by ACA only apply to long-term policies. Gap insurance falls outside these mandates. For you, this means that the ten essential health benefits ACA plans must cover do not apply to short-term insurance. Typically, sudden illness and injury coverage provided by emergency services are covered, nothing else.
Today we have entered a new era in Health Insurance and coverage's. We have been forced to reevaluate our financial circumstances and related abilities to pay for standard heath care. Many healthy people are benefiting from a short-term health plan because it allows for low premiums and keeps upfront cost down.
Unlike traditional health insurance plans, short term policies offer medical coverage for a limited time, no longer than 12 months.
The primary differences between short vs long term plans are outlined below to help you decide which works best for you.
1) TIME: Twelve months is typically the maximum coverage on a short-term policy with some policies require a three-month minimum. These plans are not renewable. When your coverage ends you are uninsured, you may apply for a second short-term insurance to give you longer protection. This option limits you to enrolling in two policies per year.
2) FLEXIBLE: With coverage ranging from 30 days to a year, your paying for the protection you want. If you need three months of coverage until your next employer’s medical plan kicks in, you only pay for three months. If it takes twelve months to find a job and secure insurance, you have the option. Short-term insurance offer quick application and approval. There is no need to wait for an open enrollment they are available year-round.
3) EXPENSE: Gap insurance policies offer lower premiums than long-term policies,however coverage is limited. The purpose of these policies is to protect you and your family in the event of unforeseen accidents and illnesses. Your basic medical needs and emergencies get covered.
4) PRE-EXISTING CONDITIONS: Pre-existing conditions, preventative treatments, and prescriptions often fall outside the scope of temporary insurance plans. Short-term policies do not cover pre-existing conditions, please keep this in mind when considering a gap policy. If you have a pre-existing condition weigh the cost of the insurance.
5) The Affordable Care Act (ACA): This dictates the qualities of health insurance policies and the goal is to provide affordable healthcare to all people. However, the requirements laid out by ACA only apply to long-term policies. Gap insurance falls outside these mandates. For you, this means that the ten essential health benefits ACA plans must cover do not apply to short-term insurance. Typically, sudden illness and injury coverage provided by emergency services are covered, nothing else.
*Since each insurance option differs in cost and benefits, it’s important to discuss your unique needs with an insurance expert who can keep you, your spouse, and your children covered under the right plan at a price you can afford. The best insurance is the one which fits your situation and meets your needs.