Pros And Cons Of Short-Term Health Insurance Plans

One of the biggest changes the Trump Administration made to the ACA was promoting the sale of short-term health insurance plans. These are plans of limited duration, which provide coverage for a few months or up to 364 days. They are also cheaper than full coverage. It’s a great temporary option if you are between medical plans, and you don’t want to risk paying for unexpected medical expenses. Learn more about the pros and cons of short-term health insurance in our article.

The Pros

Temporary insurance can be a great alternative if you are relatively in good health and need the benefits to cover large, unexpected, medical bills. Think about the cost of hospitalization and surgery rather than more routine health costs such as maintenance visits.  

Short-term health insurance can be customized. In other words, you are in control. For instance, you can:

  • Choose the policy length, anywhere between 30 to 364 days based on where you live.
  • Choose your coinsurance and deductible.
  • You can pick more comprehensive coverage, which comprises plans with specific preventive services and plans with limited benefits.

With temporary coverage, you also have the flexibility of not having to wait for open enrollment or the need to qualify for a special enrollment period. These plans are available for purchase all year-round. Also, you can get a quote within seconds, and begin coverage as early as the following day.

If you are in between major medical plans and need an alternative you can afford, a temporary insurance policy may be a good option rather than having to pay your medical bills out-of-pocket. While the particulars can vary from policy to policy, you will have the typical expenses covered such as ER room treatment, hospital room, board intensive care, and outpatient surgery.

The Cons

Short-term insurance may not be the right fit for everybody. These plans aren’t ACA compliant, meaning they don’t provide the minimum coverage needed. In other words, they don’t include coverage as defined by the ACA. However, some plans may cover a few preventive services. Some factors such as age and health history may impact your eligibility for these plans. Also, coverage doesn’t typically extend to pre-existing conditions and is limited to 30 to 364 days.   

Temporary health insurance may be a good alternative if you are looking for temporary health coverage for you and your family. Premiums are more affordable. Keep in mind these plans are not eligible for premium tax credits or cost-sharing reductions. You can weigh the pros and cons with the help of a licensed agent and choose what’s right for you.

If you are looking for supplemental or short-term health insurance, request a quote today.


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