Affordable Care Act
Tips for People with Short Term Health Plans
Published on December 05, 2017
Short Term Customer Tips
Last year, thousands of people bought short term health insurance because they missed the open enrollment period for Obamacare, or could not afford major medical coverage.
A recent survey of eHealth customers who bought short term health plans instead of major medical health insurance found that:
- 70% considered purchasing a traditional (non-short term) major medical health insurance plan when shopping
- 41% tried to apply for a major medical health insurance plan before enrolling in short term plan.
- Of those, more than half (57%) said they couldn’t enroll because they hadn’t experienced a qualifying life event.
- 38% said that they selected a short-term health insurance plan because they wanted lower monthly premiums.
Top 5 things someone with a short term health plan need to know:
If you’re wondering what the benefits of short term health plans are, here are five reasons short term coverage may be a good option for you:
- They start quickly – In some instances, you can have short term coverage in place within 24 hours.
- They’re affordable – Between April and June of 2014, the average individual eHealth customer paid $107 per month, on average, for short term coverage – however, short term coverage is more limited.
- They cover emergencies – Most short term health plans are designed primarily to provide you with coverage and protection from unexpected injuries and illnesses that require emergency medical care.
- They satisfy many non-government requirements for insurance – If you need to verify that you have health insurance for travel, or in order to get admitted to certain types of schools, like nursing or dental schools, short term plans often satisfy those coverage requirements.
- You can cancel easily – When you apply for short term health insurance, you’ll typically have the option to pay for your coverage all at once, or you can pay month-to-month. If you pay month-to-month, it’s very easy to cancel your plan at any time.
When buying short term health insurance, be aware
- Short term insurance isn’t guaranteed – You have to apply for a short term health plan each time you renew coverage, and insurers can decline your application, even if you’ve been approved for short term coverage in the past.
- The end of your short term plan does not make you eligible for a major medical or “”Obamacare”” health plan – When your short term health plan ends, you won’t automatically be able to buy a major medical health insurance plan. Without a qualifying life event, you’ll have to wait until the next open enrollment to be guaranteed access to health coverage.
Here is How Short Term Health Insurance Works