What Is Short Term Health Insurance And Why Do You Need It?
Today taking health insurance is of utmost importance due to rising medical costs. There are many affordable plans available from which you can a select one that suits the kind of coverage you require.
While must people opt for a regular, long term health policy, you can also look into short term health insurance plans in Texas, USA, which offer a variety of benefits.
About Short Term Health Insurance
Out of the many insurance types available, a key one is the short term policy, which is also known as term health insurance over 70. It is usually opted by people in their young age and is designed to offer benefits for a particular term or period.
During this period, if the policy holder has any kind of health problem, the policy will pay compensation to help meet the expenses. The premium payments for this type of health insurance are low. Its affordable quality that has made it popular and people opt for it instantly.
Some Important Facts To Know About Short Term Health Plan
The maximum term period in short term health insurance is 12 months, after which you can take up another short term policy. Most illness and critical health problems are covered under it.
Newer plans now cover prescription drugs, but there also there are some restrictions as only generic drugs are covered, not those for pre-existing medical conditions. Furthermore, brand drugs and specialty drugs are not covered by it.
It offers limited benefits for mental illnesses and child birth service is not included but the policy will cover complications arising from maternity. It is possible for the insurance company to deny application of a short term policy if you have pre-existing health conditions.
Who Can Take Up Short Term Health Insurance?
There are specific conditions under which this type of insurance proves to be useful and is the best choice over regular insurance. In case you have left a job and are yet to move onto another one or feel that there will be a gap of six to nine months till the new jobs is taken up, this type of health insurance is low cost and offers good benefits.
Those who find it difficult to afford a regular health insurance over 50 can take it up and gain essential coverage benefits but avoid the huge expenses. For example, a person opting for the Obamacare Bronze-Level ACA Plan would have to pay $3000 for it per year which might be difficult.
Short Term Medical Insurance and ACA Comparison
However, if short term insurance was taken for a period of twelve months, payment to be made annually will be less than $2000. It’s also suitable for those who have retired but are too young to be eligible for Medicare.
Those who have to take treatment in a doctor or hospital which they prefer, but which does not support Obamacare will find short term health insurance to be just right for their needs.
Those who are students or have recently graduated can take it up till they get a regular health insurance plan or those whose age is such that they cannot be put into their parent health insurance policy can opt for it.
Individuals who are in a waiting period to enter into another important medial insurance policy will find this type of health insurance to be ideal for their needs.