What exactly is Short-Term health insurance?
A short-term plan provides temporary coverage to help pay for hospital and medical claims when employer health insurance or coverage under the Affordable Care Act is not possible. A short-term policy could be a good fit for people that:
- Missed the ACA Open Enrollment
- Do not have access to employer-based coverage
- Cannot afford coverage through their employer or the Marketplace
- Are between jobs or must satisfy a new employment waiting period
- May be coming off a parents’ policy at age 26
- Recently divorced
The Value of Short-Term Health Insurance
As the saying goes, you get what you pay for. That’s the case for short-term plans. Most short-term plans are designed to exclude coverage for preexisting conditions, maternity care and mental health/substance abuse treatment. Short-term plans are not ACA-compliant and require an applicant to pass underwriting guidelines to be approved.
As a result of these limitations, short-term plans are designed to be an affordable option, saving individuals or families as much as 80% when compared to ACA coverage, especially when no subsidies are available for COBRA continuation rates when there is a loss of employer-based coverage.
In addition, short-term plans can be purchased anytime throughout the year, many times with same-day approval. They also offer flexibility in benefit designs, deductibles and cost sharing requirements, expanded use of doctor and hospital networks, and can be canceled at any time.
Get in touch with the UROne Benefits® team to help you find the right coverage to fit your needs. Call us at 800-722-7331.
This post was originally published in April 2020; updated May 2024.