Short-term medical insurance is a product for people who are in a period of transition; and who don’t have a standard health insurance coverage from their recent employer.
Most short – term medical insurance policy only offer 36 months coverage, or limit the amount of time you can keep the policy to 12 months or less. It can be bought in one – month increments which makes it convenient to drop at the end of any month. Also, Short – term medical insurances are sold to people who are under the age of 65; who didn’t have pre – existing ill – conditions; and it is for healthy individuals and families. It is an appealing product in comparison of other insurance options provided to permanent employees; because of its low – cost premium.
The group of people who would buy short – term medical insurance part – time and temporary employees, such as seasonal workers. According to most company rules, part – time employees won’t be qualified to purchase corporate insurance plan, unless he / she will become a permanent employee in the future.
People who are temporarily out of work, between jobs, or laid off are mostly like in search of affordable short – term medical insurance. According to The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), employees who are laid off or are between jobs can continue coverage with their previous employers for up to 36 months of period until new employer’s plan apply. If the premium of COBRA too high, the best option will be a short – term medical insurance with lower premium.
Newly college graduate is another group who are likely to buy short – term medical insurance. Because they won’t able to find a job instantly that offers health insurance benefits. Temporary insurance is their best solution temporarily.
Children who are going to turn 18, and are likely to lose their dependent status under their parents’ health coverage is another promised group. Because they will be turn to be an independent adult status, a short – term insurance can keep them insured until they find a job that offers health insurance, or they can enroll in an individual plan.
Another likelihood is that an individual temporarily without an insurance for other reason; such as on a strike; discharged from the military or have early retirement before turning into 65.
A short – term medical insurance generally offers low – cost premiums. Because they accept only the healthy individuals and families, who are not likely to claim in a short period of time during the coverage time. With Short – term medical insurance, you have benefits to visit any doctor or specialist you like. Surgery, hospital care, emergency services, diagnostic tests, prescription drugs, follow – up office visits, and even limited mental care are included under the policy.
For people who are between jobs, waiting for employer benefits, temporary workers or new graduates without an affordable medical plan, a short – term medical insurance can be a temporary solution for unexpected illness and accidents, and the expensive medical bills.