Wole.K
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In the United States, short term health insurance refers to short-term, temporary health insurance policies with a very limited duration, usually a few months to three years. These policies were initially intended for those individuals who require short-term insurance to bridge the difference between more comprehensive long term plans. As a result, many short term plans are available only to individuals, and some of the coverage is "limousine" - that is, it is only available to people who meet certain requirements.
The reason why many short term health insurance plans are limited in time is because they provide coverage only to people whose health needs cannot be adequately met through more comprehensive short term health plans. Typically, these individuals have gone outside their insurance plan due to prior illnesses or other reasons, and are in need of short term medical coverage to help them remain covered while they recover. In some cases, individuals who qualify for temporary medical coverage from outside companies may also find that their short term health insurance plans do not cover the same benefits that their more comprehensive short term health plans do offer. Because short term medical coverage is specifically designed to provide temporary coverage, some short term health insurance plans limit the benefits provided to the individual to the extent that the company won't extend benefits to someone else in the event that the individual isn't covered by their own plan.
One way that some short term health insurance companies help people who would otherwise be denied affordable health care insurance is by adjusting their enrollment status as the economy gets worse. For example, some short term health insurance companies may temporarily reduce the availability of coverage as a response to economic conditions. While the reduction in coverage may last only a short period of time, it can affect people's eligibility for other federal aid programs, such as Medicare Part B and Medicaid.
Short term health plans also vary by state. Each state has different enrollment requirements, so it's important to understand what your state requires for enrollment. Some states require that applicants show proof of having one year of on the job coverage, while others may require less than one year. If your state requires proof of coverage for a one-year period, be sure to purchase short term health insurance plans that will keep you covered well past the one year mark. These plans are sometimes called "short term policies" or "temporary policies."
Another option for short term medical coverage is to enroll in an exchange-based plan that provides short term insurance at a higher deductible. People who purchase such plans need to pay a higher premium because they will have fewer options and fewer choices in terms of the coverage they receive. enrollees of exchange-based short term health plans are considered "guaranteed renewable" once they reach the point of opening their own policy. Unlike short term health plans, these plans often have higher deductibles and co-pays. There are often fewer benefits available, as well, depending on the insurance provider and the state of your own coverage.
Short term medical insurance can be useful for a wide variety of situations, from the time you become ill and need coverage right through your retirement. And it can be useful for pre-existing conditions, even if you're already covered. The choice of the type of coverage you choose will depend on many factors, including your current health status, your family situation, and your budget. And it's important to note that these plans are not "guaranteed" for anything. So be careful about which insurer you choose and make sure that you follow your coverage's terms and conditions.
The reason why many short term health insurance plans are limited in time is because they provide coverage only to people whose health needs cannot be adequately met through more comprehensive short term health plans. Typically, these individuals have gone outside their insurance plan due to prior illnesses or other reasons, and are in need of short term medical coverage to help them remain covered while they recover. In some cases, individuals who qualify for temporary medical coverage from outside companies may also find that their short term health insurance plans do not cover the same benefits that their more comprehensive short term health plans do offer. Because short term medical coverage is specifically designed to provide temporary coverage, some short term health insurance plans limit the benefits provided to the individual to the extent that the company won't extend benefits to someone else in the event that the individual isn't covered by their own plan.
One way that some short term health insurance companies help people who would otherwise be denied affordable health care insurance is by adjusting their enrollment status as the economy gets worse. For example, some short term health insurance companies may temporarily reduce the availability of coverage as a response to economic conditions. While the reduction in coverage may last only a short period of time, it can affect people's eligibility for other federal aid programs, such as Medicare Part B and Medicaid.
Short term health plans also vary by state. Each state has different enrollment requirements, so it's important to understand what your state requires for enrollment. Some states require that applicants show proof of having one year of on the job coverage, while others may require less than one year. If your state requires proof of coverage for a one-year period, be sure to purchase short term health insurance plans that will keep you covered well past the one year mark. These plans are sometimes called "short term policies" or "temporary policies."
Another option for short term medical coverage is to enroll in an exchange-based plan that provides short term insurance at a higher deductible. People who purchase such plans need to pay a higher premium because they will have fewer options and fewer choices in terms of the coverage they receive. enrollees of exchange-based short term health plans are considered "guaranteed renewable" once they reach the point of opening their own policy. Unlike short term health plans, these plans often have higher deductibles and co-pays. There are often fewer benefits available, as well, depending on the insurance provider and the state of your own coverage.
Short term medical insurance can be useful for a wide variety of situations, from the time you become ill and need coverage right through your retirement. And it can be useful for pre-existing conditions, even if you're already covered. The choice of the type of coverage you choose will depend on many factors, including your current health status, your family situation, and your budget. And it's important to note that these plans are not "guaranteed" for anything. So be careful about which insurer you choose and make sure that you follow your coverage's terms and conditions.