Short term health insurance plans provide coverage to travelers, people between jobs, people who retire early and others.
These plans are intended to act as a bridge spanning gaps in a person’s standard coverage.
Short term health insurance plans provide coverage for anywhere from a few days to 3 years and are usually very affordable.
Our team of health and wellness experts have determined that the following are the most important benefits of short-term health insurance.
17 Benefits Of Short Term Health Insurance
Short term health insurance provides a host of benefits including:
1: Short term health insurance provides an array of coverage options.
With short term health insurance, you can tailor the coverage to fit your personal needs. You can cover potential hospital costs and prescription drugs, or outpatient doctor visits and laboratory services. Some plans will cover mental health services and surgery. You can also choose as little as three months or as much as three years of coverage.
2: Short term health insurance does not have an enrollment period.
With Medicare supplemental insurance or a Medicare Advantage plan, you have to adhere to specific enrollment periods (1). With short term health insurance, there is no enrollment period, and there is no age requirement. College students, working professionals, retirees, and more all choose short term health insurance to satisfy their healthcare needs.
3: Short term health insurance can be an effective bridge to Medicare.
Nearly 20% of Americans retire at 62 (2). But if you are one of them, you will need to arrange for health insurance to cover you until Medicare kicks in. A short term health insurance plan can be a viable option. You can get up to three years of coverage that will protect you and your finances in the event of a health crisis. And that will take you right to 65 and Medicare.
4: Short term health insurance is more affordable than you think.
Many people think short term health insurance must be expensive. Yet that is not the case at all. Plans start as low as $70 a month. Of course, the more you pay, the more coverage you will receive. But even comprehensive short term coverage is still only a fraction of the cost of traditional health insurance. So, you can address your needs without going broke.
5: Short term health insurance is a smart choice for the self-employed.
If you are a successful self-employed individual, a traditional health insurance plan will cost you $500 per month or more in most states. By contrast, you can get short term health insurance coverage for about 1/4 that amount. If nothing else, short term health insurance can ensure you are protected while you decide what to do about long term coverage.
6: Short term health insurance is a practical solution.
The number and variety of short term health insurance plans means there is little or no reason to ever be without health insurance. Even if you are going through a difficult period, you can get a short term plan that will cover the basics starting at a little more than $2 per day for yourself, or $5 per day for a family of four. You can also choose as little as 90 days of coverage.
7: Short term health insurance offers provider flexibility.
Some short term health insurance plans have robust provider networks of participating doctors and hospitals. Others allow you to choose a healthcare provider of your own. Most plans are widely accepted by doctors and hospitals in most states. You should have no problem finding top-quality care with your short term health insurance plan.
8: Short term health insurance is convenient.
Obtaining short term health insurance is fast and easy. In an often confusing insurance landscape, it stands apart as being both simple and convenient. There is no hitching your wagon to the uncertain future of the ACA (3), no insurance marketplaces to navigate, no waiting periods, and no punishing premiums. In many respects, it is what all health insurance should be.
9: Short term health insurance is a great security blanket.
One of the most troubling aspects of being laid off or starting your own business is the uncertainty regarding healthcare coverage. What happens if you or a family member gets sick before you find a new job, or your business takes off? Short term health insurance provides an effective security blanket that keeps everyone safe during periods of transition.
10: Short term health insurance is available to anyone.
Unlike Medicare supplemental insurance or Medicare Advantage plans, anyone can apply for short term health insurance. And lots of people do. For instance, the law states that once a person turns 26, they can no longer be covered by their parent’s health insurance. Many of these young people turn to short term health insurance to tide them over until they can get coverage through work.
11: Short term health insurance covers prescription drugs.
The cost of prescription drugs in the US has gone through the roof in recent years (4). One of the biggest concerns people without health insurance have is how they are going to cover the cost of necessary medications should they get sick. Short term health insurance plans are available that will do just that. And for less than you expect.
12: Short term health insurance can make sure you are covered if you move.
If you lost your health insurance because you moved to another state, short term health insurance can help. It will allow you some breathing room while you settle into your new surroundings, and let you take your time finding the right long term insurance for you in your new location.
13: Short term health insurance does not have a waiting period.
Many health insurance plans have a waiting period you must endure before benefits kick in (5). Depending on the type of plan, that waiting period may be a month, or it may be a year or even two years. That is not the case with short term health insurance. Coverage typically starts as soon as the day after you apply.
14: Short term health insurance can get your family through a difficult time.
Losing a job is never easy. Even when economic times are good, finding a new job can take time. For those with a family, this transition period can be particularly stressful. Short term health insurance provides an affordable way to make sure your family is protected while you go about the process of finding work.
15: Short term health insurance protects you when you travel.
One of the most popular reasons people get short term health insurance is to protect them while they travel. In many cases, standard health insurance will not cover an individual if they get sick or have an accident while traveling overseas (6). At best, they will provide limited benefits. Short term health insurance can ensure your overseas adventure does not turn into a healthcare crisis.
16: Short term health insurance can cover pre-existing conditions.
While this is not true of all short term health insurance plans, there are some that offer to cover your pre-existing condition if you are willing to pay a higher premium. It might seem like an idea that does not make financial sense. But when you consider how quickly medical costs can add up, the extra premium you pay could wind up looking like very small potatoes.
17: Short term health insurance provides peace of mind.
Whether you are buying short term health insurance to bridge the gap between early retirement and Medicare, or to cover you while you travel, its most important benefit is peace of mind. Families facing trying times, young people kicked off their parent’s health insurance plans, and the self-employed can all rest easier knowing their short term health insurance has their back.
If you are in between jobs (meaning temporarily without health insurance) or you are planning to travel soon, or you retired early and need a bridge between your former health insurance and Medicare, consider purchasing a short term health insurance plan.