Temporary health coverage is required for people during a transitional time of their life when they would otherwise have no medical coverage. This could be recent graduates, people between jobs, laid off or anyone who is waiting for permanent medical coverage to begin.
Temporary health insurance or short-term health insurance fills a gap until standard, long term coverage can be started. Most of the time, the coverage does not include routine preventive care like physicals or immunizations. The purpose of the coverage is to provide protection in the case of an accident or unforeseen illness.
There are companies that provide these medical plans, and the rates are cheaper than the standard COBRA (Consolidated Omnibus Budget Reduction Act ), which is costly. Temporary health insurance is often inexpensive and flexible compared to standard group coverage plans. Most of the short term options range for lesser than twelve months, with a few available for more than a year.
Those with pre-existing conditions can have limited access to some of the temporary plans, with many services requiring pre-certification before treatment is allowed. While deductible amounts are typically low for temporary insurance, it is best to make sure that the deductibles need to be met only once as some of the plans require a deductible for each service.
While temporary health plans are more flexible compared to many standard health plans, this flexibility often comes with lower coverage or payment for services. Depending on the options you choose, the provider may or may not pay for surgery, blood work, x-ray, hospitalization and other treatments.
There is another possibility for those between jobs. You have an option of maintaining your former group coverage. COBRA allows continued group coverage for a given period only for qualified employees. If you qualify, this temporary health coverage will be better for your individual needs.
When deciding on temporary health coverage, read the terms and conditions of the policy carefully. Review the exclusions and benefits of each company and decide which plan would meet your individual needs and give you best value. An option to extend coverage to include prescriptions will usually benefit the insured as well.
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