Who needs short-term insurance coverage or coverage that lasts between 6-12 months? Actually, everybody needs some type of medical coverage--even if it is short-term. Why? A family with low-cost health care needs can get hit at any time with a sudden illness, accident or catastrophe creating a financial dilemma. Then, there goes without saying the families with higher cost prescriptions and those in their family suffering from a chronic illness that must have medical care. Short-term insurance can bridge that gap between your old coverage and a new plan you are waiting to go on. The downside of short-term though is that you would have to renew the policy at the end of the term; thus screening of your eligibility requirements again are necessary.
What are some other points you may want to consider when and if you decide to purchase short-term health insurance:
- Deductible -- The deductibles can run pretty high on short-term insurance. Some of the deductibles that I looked at were several thousand dollars. However, once the deductible is met (depending on the policy you pick) their can be a significant drop in the amounts you may be paying in co-pay and prescriptions.
- In or Out of Network -- If you choose a physician within most networks, the cost is usually less out-of-pocket. However, if you choose a physician outside the network it is generally a higher cost. Also, you need to know if your physician is covered under said policy.
- Capping of Costs -- Check the capping of the overall amount of costs the policy will cover for your benefit period. This is important if you anticipate incurring higher than usual medical costs for that period.
- Preventative Care -- Does the policy include yearly physical, breast-care exams, etc. at no cost? If not, you might want to reconsider the policy.