Individual and Family
Options for Short Term Health insurance in Colorado
Published on May 17, 2018
From a long life expectancy to low smoking and obesity rates and a high propensity to exercise, Colorado has distinguished itself as one of the healthiest states in the nation. But just because the people of the Centennial State are healthy doesn’t mean they have no need for health insurance.
Health insurance can help you maintain your health, and avoid bearing the burden of medical expenses by yourself in the case of a serious illness or injury. You may have heard of short term health insurance in Colorado before, but read on to see how it’s an affordable, quickly approved form of coverage that many individuals rely on.
Short term health insurance in Colorado may be your answer to affordable coverage
It’s been established—having health insurance is a good idea, but for some, rising prices might make getting coverage difficult. Premium prices on individual plans have almost tripled in the past ten years. In 2008 the average premium was $159, and at the beginning of the 2017 open enrollment period the average price was $393, according to eHealth data.
Short term plans, on the other hand, cost $83 a month with a deductible of $3,835 on average, according to an eHealth survey published in 2018.
Short-term plans provide many Coloradans with the coverage they need to get through difficult situations. While traditional insurance provides coverage for long periods or indefinitely, short-term health insurance in Colorado keeps you covered for a short time span. This allows Coloradans to stay insured during periods of unemployment and other challenge circumstances. By understanding what short-term plans are and who specifically can use short-term health insurance in Colorado, you can keep your family covered no matter what happens.
Some key highlights of short term coverage:
- Flexibility—no open enrollment period
- Fast approval
- Coverage for emergency medical purposes
These benefits of short term health insurance in Colorado will be discussed in detail below.
The details on short term health insurance in Colorado
Short-term health insurance in Colorado and other states varies from source to source, but in general, it comes with the following benefits:
- Low Premiums– Short-term health insurance plans in Colorado and elsewhere tend to have considerably lower premiums than plans that offer traditional coverage. As a result, those who have low incomes or who are unable to spend most of their money often have an easier time making short-term plans work.
- Catastrophic Protection– Temporary insurance plans focus on covering the most severe injuries and illnesses, especially those that require an emergency room visit. This protects you from the exorbitant bills that can arise if you get into a serious accident, develop an aggressive infection, or otherwise have your health decline rapidly.
- Quick, Flexible Enrollment– With a traditional insurance policy, signing up requires filling out lots of complex documentation. Such plans can also require enrolling within the open enrollment period and waiting several weeks for your coverage to kick in. But with a temporary insurance plan, you can start your coverage in as little as a day, with minimal overhead, and you can enroll during any time of the year.
Temporary health insurance plans aren’t for everyone. They don’t provide much coverage for preventative or chronic care, meaning that if you have or are at risk of developing a chronic illness like diabetes, they won’t help you treat it. But as a way to address temporary gaps in your coverage, short-term health insurance in Colorado can’t be beat.
What’s unique about short-term health insurance in Colorado?
Short-term health insurance in Colorado mostly works the same as in any other state. This type of insurance tends to appeal to Coloradans in certain situations, such as those who are:
- between coverage—Short-term health insurance in Colorado allows you and your family to maintain catastrophic coverage for up to 90 days. Sometimes when individuals may find themselves between coverage periods include:
- Losing a job with employer-sponsored health insurance
- Aging out of a parent’s plan
- Missing the open enrollment period
- Divorcing a spouse who provided coverage
- unable to afford major medical coverage – For some, traditional health insurance is simply unaffordable. In fact 27% of respondents to an eHealth survey reported that they got short term health insurance because it was more affordable than other options.
The future of short term health insurance in Colorado
In 2017, the penalty associated with the individual mandate was dismantled—meaning that those without ACA-compliant coverage will no longer face fines when tax season comes around. Since short term coverage did not protect against the individual mandate fine, some individuals might have turned to other coverage in order to avoid fines in the past. But after the 2019 tax season, individuals will no longer need to buy qualified coverage in order to avoid the fine, which may affect who opts for short term coverage.
In perhaps even bigger news, short term coverage may see an extension in the future, according to the Kaiser Family Foundation. The maximum coverage limit for short term plans may soon be anything under 12 months, adding longevity to the list of benefits one might get with short term health insurance in Colorado.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.
eHealth offers short-term health insurance in Colorado and all over the United States. For more information on your coverage options or to sign up for a policy, visit our website today. Enrollment and approval is quick and easy, and coverage can begin within a few days.