Guide To Health Insurance.org

As life's circumstances change, so do insurance needs and options. Temporary
health insurance is designed to fill the gap when a break in normal insurance
coverage occurs. Transitioning from college to full-time employment, changing
jobs, leaving home for the first time, taking an extended work sabbatical, or
retiring early are all transitions in life that affect insurance coverage.
Offered by many major health insurance carriers throughout the United States,
temporary health insurance can provide you with 30 to 365 days of medical
coverage when you need it.

Temporary Health Insurance Eligibility

Also sold as "Short-Term" insurance, temporary health insurance is aimed at healthy individuals with no pre-existing conditions or verifiable continuation of coverage. It is purchased directly from the company that sells it, either through the company itself or through one of its authorized agents. Most temporary health insurance plans are indemnity or fee-for-service plans. You pay on a month-by-month basis for as long as you need the coverage or until your eligibility runs out. Some carriers offer the option of a single payment for three, six, or twelve months of coverage. Length of available terms vary by carrier; some insurers limit their short-term policies to no more than 6 months. It takes from 24 hours to a week to get a temporary health insurance policy—much less time than standard insurance coverage.

Benefits of Temporary Health Insurance

Temporary health insurance policies offer the advantages of traditional indemnity plans. Mainly, you are able to choose your provider and hospital, and no referrals are necessary for you to visit a specialist. While plan features and benefits vary by carrier and individual needs (every insurance policy contains provisions required by state and federal laws), you can expect to pay a monthly premium, coinsurance (or copay), a deductible, and fees above what the insurer determines as reasonable and customary. Most plans do not include preventative and routine healthcare, or dental and vision benefits. Maximum lifetime benefit payouts are generally below $2 million.

The monthly cost of temporary health insurance can be quite low when compared to standard health insurance. This affordability is due to factors such as high deductibles and intense competition within the short-term health insurance market. However, the biggest factor affecting affordability is the insurers' ability to set strict pre-existing condition and treatment exclusions.

About Pre-Existing Conditions

A pre-existing condition is any condition or symptom that you have had prior to the start of coverage. A condition can be considered pre-existing even if you have never had treatment for it. Insurers can deny you coverage, deny your claims, or cancel your policy if it is determined you have a pre-existing condition and you cannot show "continuation of coverage," i.e., constant insurance coverage with no gaps. Temporary health insurance plans are an excellent way to maintain continuity of coverage for qualifying individuals.