Insurance Blog

If you’re recently unemployed, you haven’t just lost a job; you’ve probably lost a whole lot of benefits with it, prime among them being medical insurance. In this situation, you do have a solution in the form of Short-term medical insurance, which can be purchased instead of the often costlier COBRA Insurance.

COBRA insurance guarantees continuation of medical coverage for up to 18 months after a person loses his/her job. However, the rate of COBRA coverage is not the same as the original comprehensive coverage, a fact that might be missed by many. In this scenario, temporary insurance provides a viable alternative.

Short-term medical insurance works as temporary insurance, and covers most unplanned medical conditions. Inpatient and outpatient care, prescriptions, diagnostics, and emergency services are all usually covered under short-term medical insurance. However, temporary plans usually exclude pre-existing conditions and pregnancy.

Short-term medical insurance can be purchased for a month, to a year, in most cases. The “renewal” itself may be considered a new policy, so that the insured is once again evaluated for eligibility and new premium rates.

While a person can use short-term insurance to tide over an otherwise uninsured period in life, temporary insurance cannot substitute long-term insurance, which provides full permanent medical coverage, including routine check-ups, pregnancy, and other medical conditions.

When getting back on a regular long-term health plan, short-term medical insurance can often be counted toward creditable coverage for group plans. The importance of getting the tag arises in terms of assessing the applicant to see whether he/she has been continuously covered, and also in determining the applicable pre-existing conditions for the plan.

One other factor that tilts the balance in favor of short-term medical insurance is the ease of signing up for a plan. Being a temporary plan, there are usually no lengthy underwriting procedures, and the plan can typically be purchased online.

If you are considering short term medical insurance, ensure that you want it as temporary insurance. It’s best if you are looking at purchasing short term medical insurance for six months or less. It can also be a better option than COBRA insurance for many people, but it is important to know that short term insurance is just that— short term.

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