When shopping for health insurance, there are different reasons for choosing your coverage, whether it’s price or benefits. If you’re looking for low-cost coverage and don’t need the benefits comprehensive major medical plans offer, then short-term health insurance could be a viable option to help you save. This is a key reason many people get short-term health insurance. In fact, it’s getting so popular that the U.S. Department of Health and Human Services predicts that nearly 1.6 million Americans will have short-term health insurance by 2023!
If you’re one of the many who fall into this category, just want health insurance in place for emergencies, or don’t go to the doctor often, then short-term health insurance could help you fulfill your coverage needs and save money along the way!
5 Reasons to Get Short-Term Health Insurance
If you’re new to short-term health insurance, you may not know that it can have a lot of advantages. Short-term health plans have affordable, flexible coverage options with a range of premiums and deductibles, so you can choose what best fits your specific budget.
They also offer renewability features, depending on your location, a quick enrollment process, and other helpful benefits. Let’s look at five reasons why short-term health insurance could be a wise coverage solution for you.
1. Short-term health insurance has lower monthly premiums.
One of the biggest draws of short-term health insurance is its affordable cost. With lower monthly premiums than other health care options, short-term health plans can help you save money on coverage.
Why is short-term health insurance cheaper? It has coverage limitations and exclusions to keep premiums low. It doesn’t cover things like pre-existing conditions, mental health care, or pregnancy care. On the one hand, if you don’t need coverage for these health conditions, then you could save a chunk of change with a short-term health plan. On the other hand, if you have pre-existing conditions that require routine medical attention, then a comprehensive major medical plan with more coverage would be a better fit for you.
Short-term health insurance helps you pay for coverage you want, not the coverage you don’t.
It doesn’t cover everything, but it can help reduce the amount you pay out-of-pocket for medical accidents and emergencies. It also includes benefits for everyday medical care, like doctor visits and lab work, so you have benefits for the occasional times you get sick, too.
2. Short-term health insurance has renewability options.
The phrase “short-term health insurance” may make you skeptical. How long can you keep short-term health insurance? Can you renew short-term health insurance? Today, you can enjoy affordable short-term health coverage for a longer duration than you could in the past.
Some short-term health plans are now available for up to 12 months with the option to renew coverage two additional times. Plan durations are state-specific, but these new renewability options are important to consider when you’re comparing health insurance plans.
Also, whether you want short-term health insurance for weeks, months, or years, you have the option to select the time frame that you prefer with no penalty for canceling your coverage early.
3. Short-term health insurance has an easy application process.
Short-term health insurance companies make it easy to apply for coverage with a transparent application process that makes it easy for customers to understand what they’re purchasing. Also, short-term health insurance doesn’t have an open enrollment period, so you can apply 365 days a year!
As a short-term health insurance applicant, you’ll answer a set of health eligibility questions to determine whether you qualify for a short-term health plan or not. Here are some people who could benefit from a short-term health plan:
- Individuals between jobs
- People who want affordable health insurance and don’t have a pre-existing condition
- Those who don’t have company-provided health benefits
- Self-employed individuals or people in the gig economy
Do you belong to this list? If so, then you should know you could get affordable health insurance that fits your lifestyle.
Keep in mind that short-term health insurance doesn’t cover pre-existing conditions, mental health treatment, substance abuse disorder services, vision care, or certain other conditions. If you need coverage for these conditions, you will not be eligible for short-term health insurance.
4. Short-term health insurance kicks in quickly.
Short-term health plans are great for people who need health insurance and missed open enrollment. With a quick enrollment process and coverage that begins as soon as the following day*, short-term health insurance can be a quick coverage solution.
Here are some examples of people who could benefit from the flexibility of short-term health insurance:
- A young mother of three lost her job (and company-provided benefits) and needs coverage right away to protect her family from unexpected medical emergencies before her next career move.
- A young man just turned 26 and can no longer use his parents’ health insurance. He’s a graduate student and needs coverage before he enters the workforce, so he purchases a short-term health plan to use in the meantime.
- A couple in their thirties leaves their corporate jobs to start their dream of opening an art studio together. They’re now self-employed and want affordable health insurance to protect them from unexpected medical expenses. They’d also like benefits for their yearly doctor visits, urgent care trips, and telemedicine chats.
Not everyone receives health insurance from their workplace, and each individual has a unique situation. That’s why short-term health insurance is all about helping people get covered right away.
5. Short-term health insurance plans have flexible premium and deductible options.
Last but not least, short-term health insurance offers flexible, personalized coverage options. You can choose from multiple plans to select the premium and deductible that make your wallet happy. Side note: Your premium is the amount that you pay for health insurance each month. Your deductible is what you’re responsible for paying before your benefits start paying for covered services.
If you rarely use medical services and want to pay as little as possible per month, maybe consider a plan with a low monthly premium and a higher deductible. However, if you plan to use your short-term health insurance benefits more frequently, selecting a higher monthly premium and lower deductible could be a good idea for you.
Short-term health insurance isn’t black and white. Some plans live in that gray area, so you don’t have to choose between a high deductible/low premium or a low deductible/high premium. Flexibility is a key feature of short-term health insurance, so make sure to compare prices and plans to find the best plan for your specific needs.
