The Problem with Short-Term Health Insurance
Having a health insurance plan under your belt is mandatory if you want to shield yourself from a financial loss. However, you will never run short of options while you are out to seek one for you. That might be quite overwhelming for you. One such opportunity can be a short-term health insurance policy. These insurance policies are ideal for compensating a gap. For instance, if you are retiring or joining another job before you attain the eligibility for achieving Medicare and require coverage for a short period, short-term health policies might be beneficial for you. The problem arises when you buy them as a substitute for your regular insurance. Though the cheaper price tag makes these policies tempting, some serious questions are associated.
Short-Term Policies May Not Comply with Obamacare Rules
Short-term policies might seem to be a good deal at the first instant. But these policies have no obligation to comply with Obamacare rules that are designed to ensure that sick people receive insurance coverage at the right time. The reason is short-term health insurance policies don’t need to comply with ACA or the Affordable Care Act. As a result, these policies won’t be offering you coverage in case of pre-existing conditions. You can be refused coverage even if your pre-existing conditions.
These policies would cover not a single benefit among the10 essential ones that Obamacare policies offer like mental health services or maternity care. Short-term health insurance wouldn’t be renewed if you already have coverage while you are sick. Last but not least, you wouldn’t get paid for expensive treatments. In a nutshell, you could very well face bankruptcy even if you are on such policies.
Is There Any Other Issue Related to Buying Short-Term Health Policies?
Yes. The termination of such a health plan won’t be considered as an eligibility to get hold of an insurance plan throughout a particular enrollment period. Consequently, you would have to keep your patience until open enrollment is initiated in order to receive coverage from a different insurance policy. Open registration takes place once in an entire year. For policies that comply with Obamacare, open enrollment happens at the end of the year, and you are entitled to receive coverage from the 1st of January. Hence, in case your short-term plan gets over in February and doesn’t get renewed, you could spend almost a year without coverage.
Should You Buy Short-Term Health Insurance?
Unless you are an individual with deep pockets, a short-term health insurance plan is not the one you would want to avail of. The main reason behind this is that such policies are primarily designed for well-to-do families and individuals and are not suitable for everyone. You can instead maintain the coverage provided by your employer if you can do so. As per the mandates of COBRA, you can easily preserve the employer plan for 18 to 36 months. If you are looking out for long-term coverage, you should be on the lookout for alternatives. It’s always better to purchase those traditional health policies which comply with Obamacare. However, if your pockets don’t allow you to go with such a plan, but have too much to avail Medicaid, grabbing a short-term health plan might be a better choice than not having an insurance plan at all.
How to Find the Right Insurance Policy?
Whenever you are searching for an excellent insurance policy, you have to be aware of the fact that with low premiums, comes limited coverage. Better health policies would always come with higher prices, and that’s a fact. Although short-term policies might seem to be easy on your pockets, you might have to shell out more than you had ever expected. To seek out the right coverage, get to know what is included, and excluded from your health insurance policy. The coverage should benefit you and fulfill your medical requirements.
Short-term health insurance plans might seem cheaper to you in the initial stages, but in the long run, there is every possibility that your medical expenses will start creeping higher. It will be difficult for you to manage your money under such circumstances. Therefore, when shopping for health insurance plans, you should consult an expert and make an educated decision.
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