Understand the Ins and Outs of Short-Term Medical Insurance

For some people, short-term medical insurance might be a more affordable way to maintain health coverage

short term medical insurance

Losing a job is already stressful. But losing a health insurance plan provided by an employer can have a significant impact on the well-being of a worker and their family. Short-term medical insurance is a powerful tool for easing the burden on individuals who lose their healthcare coverage or are temporarily missing coverage. 

For many Americans, the Affordable Care Act filled that void. The ACA, however, may be on its way out. While there are no longer penalties for refusing coverage, that can still be a dangerous strategy. If you’ve had the pleasure of seeing a doctor’s bill lately, it’s pretty clear how insurance coverage is vital to your financial health. But for people that are healthy enough, short-term medical insurance may be a more affordable option. 

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Short-term medical insurance comes with some long-term potential benefits

People without healthcare coverage live in fear of falling ill or getting injured because they fear the expense of a hospital visit. A single medical event could put them in a financial hole that takes years to get out of. By far, the most significant benefit of short-term medical insurance is the relief of knowing you can get medical care if you need it, without the anxiety of burdensome medical bills.

Short-term medical insurance comes with a list of benefits specific to how the coverage works and how it can ease your concerns quickly and easily. 

Choose your own length of coverage

Term lengths vary between individual states, but most plans offer coverage from as little as one month up to 12 months. With the ability to customize the length of a plan to your specific requirements, you can design your short-term medical insurance to meet your particular needs.

Opportunity to get coverage fast

If you quit or lose your job, you don’t have to worry about going for an extended period without coverage. Many plans can take effect the day after your application is submitted. You could also plan ahead if you know an event is coming up that will leave you without coverage. Choosing a later effective date means that you can set up a seamless switch between your existing coverage and your new short-term coverage.

Drop short-term medical insurance coverage any time you want

Just as important as having the coverage as soon as you need it, you can also get rid of the coverage when you no longer require it. If you or a family member gains access to a better, more permanent plan, you can drop your coverage without penalty.

This subtle but powerful feature of this health coverage vehicle means that you won’t be locked into premiums on coverage that you are no longer using once you have a better solution. 

Lower premiums than Affordable Care Act coverage

To help you manage your time in between jobs, short-term insurance is generally a cheaper form of coverage. In almost all cases, short-term insurance would be more affordable than the Affordable Care Act alternative. The downside to the short-term insurance is that it is not bound by the same coverage requirements that make ACA beneficial.

There are still reasons to take advantage of the Affordable Care Act. The primary function ACA can now provide is getting coverage for those with pre-existing conditions and guaranteeing that some essential functions of the insurance will be included. For those that don’t have a great need for those advantages, short-term medical insurance is a product worth exploring when you find yourself without coverage. 

Have you ever received short-term insurance? What was your experience like?

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