Are you long on questions about Short Term health insurance, but short on time? At GetHealthInsurance.com Agency Inc., we hope these FAQs have the quick answers you’re looking for.
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Short Term insurance is also called Temporary health insurance or Term health insurance. It is designed to bridge temporary gaps in medical insurance coverage. That means it can be a good solution for a wide variety of people with all sorts of different needs, including those…
These are just some of the situations where Temporary insurance fits for people. If you’re facing a change in your life that leaves you with a gap in your health insurance coverage, then taking a look at Short Term medical insurance plans may help you take a long step toward finding the best health insurance for your current needs.
Yes. You can get a quote in seconds. Complete an application in a few minutes. If you qualify, you can be insured as early as the next day with some carriers.
That depends on what you mean by cheap health insurance. Short Term health insurance, what others might call Temporary health insurance or Term health insurance, is generally less expensive than a health plan that is in line with the requirements of the Affordable Care Act (ACA). That’s true.
However, it is less expensive for a reason. Short Term medical insurance isn’t required to cover the essential health benefits that ACA plans have to by law. So what’s covered by any given Short Term insurance plan can vary. Check the plan details carefully to make sure what you’re buying covers what you need.
Also, because Short Term medical insurance does not provide the coverage required by the ACA, you could face a tax penalty. You’ll want to figure that into your costs as well.
The ACA, what is often referred to as Obamacare, requires coverage in all these areas:
Short Term health insurance does not meet this minimum essential coverage standard outlined in the ACA and may not provide mandated coverage for Essential Health Benefits.
Absolutely. Many Short Term medical plans offer ways to shave dollars off your premium, the money you pay an insurance company, usually monthly, to have your health care plan. Consider one of these options if you want to save even more money on Temporary health insurance.
Also remember that staying with doctors and health care providers that are within your chosen Short Term medical plan’s network may lead to savings as well.
No. Short Term health plans are not minimum essential coverage as defined by the Affordable Care Act (ACA), often called Obamacare. If you don't have minimum essential coverage for any month in 2018, you may have to make a payment when you file your federal tax return unless you qualify for an exemption from the requirement that you have health coverage for that month. For 2019, the federal tax payment for not having minimum essential coverage is no longer applicable. If you are looking at Short Term plans for 2018, take into account that potential tax penalty costs.
Short Term is not required to comply with certain federal market requirements for health insurance, principally those contained in the Affordable Care Act. Be sure to check your policy carefully to make sure you are aware of any exclusions or limitations regarding coverage of preexisting conditions or health benefits (such as hospitalization, emergency services, maternity care, preventive care, prescription drugs, and mental health and substance use disorder services). Your policy might also have lifetime and/or annual dollar limits on health benefits. If this coverage expires or you lose eligibility for this coverage, you might have to wait until an open enrollment period to get other health insurance coverage. This coverage is not “minimum essential coverage.”
No. You are not eligible for tax subsidies to help pay for Short Term health insurance plans. The plans are not minimum essential coverage as defined by the ACA, and do not qualify for the same subsidies that apply to ACA health plans. However, generally, Short Term health plans cost less than ACA health plans, so you may save money even without the subsidies.
No. Short Term health insurance plans typically do not cover preexisting medical conditions. How each state defines preexisting conditions varies, but, generally speaking, Short Term health insurance policies exclude coverage for conditions you have been diagnosed with or treated for within the last 2 to 5 years. Short Term insurance is medically underwritten insurance, which means you have to answer a series of medical questions and get approved by the insurance company to get the coverage. ACA plans, in contrast, are guaranteed issue, meaning you can’t be denied coverage based on your preexisting conditions.
If you have an existing medical condition and you are still covered under your current coverage, find out if you can extend your medical insurance. For example, employer-based insurance may be extended under COBRA (or a similar state program).
Yes, spouses and dependents can be covered. However, everyone you want to cover is subject to a series of medical questions to determine if they are eligible for the Short Term health insurance plan.
It varies by state, but the new federal Final Rule for Short Term Limited Duration Insurance allows terms of less than 12 months (364 days). You'll have to check what terms are available in your state.
According to the new federal rule a maximum duration of 36 months of renewable coverage is allowed for Short Term limited-duration insurance.
However, many Short Term health insurance plans are not renewable. Once your term is up, you would have to apply for a new Short Term plan to get covered again.
Important: If you reapply, you are applying for a brand new Short Term insurance plan, not an extension of your current plan. So, if you were diagnosed with an illness or medical condition while you were covered under your current plan, that would now be considered a preexisting condition for the new plan.
Generally speaking, yes. Most Short Term health insurance plans will not penalize you for using the doctor of your choice, even if that doctor is outside of their plan’s network. However, some plans will pay only if you use a network provider. It might make more sense for you to choose a plan with a network that includes your doctor. Staying in-network can save you money because in-network doctors and health care providers have generally agreed to charge lower fees to those who are a part of that network.
No. Some health care plans require you to designate a primary care provider or primary care physician (PCP) as your main health care professional. Under those plans, your PCP must then officially refer you to another doctor or for a specific service if you want that visit or service to be covered.
You don’t have to deal with those types of pre-approvals and network issues when you have a Short Term health insurance plan. Generally speaking, you can go directly to any doctor, specialist or health care service without needing a referral. As always, check the specific plan for more details.
Don’t forget, though, that if you do stay in your Short Term insurance plan’s network for your care, you can often save money because of the lower rates doctors and providers in the network have agreed to charge.
Possibly. GetHealthInsurance is a multicarrier agency, so we offer Short Term health insurance plans from several carriers. Some carriers do charge application fees, so check the specific plan for details on whether applying for that carrier’s Short Term insurance plan includes a fee, and factor that into your decision.
Some carriers offer an option where you can be refunded the unused premium on your Temporary health insurance plan should you find a more long term health insurance solution before the end of your plan’s term. This option is another great way to potentially save money. You have the freedom to get covered with a Short Term medical insurance plan during your time of transition and still get money back if you find a more permanent health care plan sooner than you expected.