Short term health insurance plans are much less expensive than ACA health insurance plans. However, short term medical insurance doesn't qualify for tax subsidies or exemptions. In other words, you will have to pay the full price.
A premium is the amount of money you pay for an insurance plan. On top of your premium, short term health insurance has several out of pocket costs.
Keeping the following suggestions in mind will help you save money on your short term medical insurance premium:
You will have to pay the deductible before your plan starts providing coverage. Therefore, if you choose a higher deductible, you will have a lower premium.
Lower Policy Maximum
If you were to get sick or injured, short term health insurance would pay up to the selected policy maximum. Therefore, if you choose a lower policy maximum, your premium will be lower.
After the deductible is met, short term medical insurance will pay up to a certain percentage before providing coverage up to the selected policy maximum. If you choose a higher coinsurance (such as 50/50 instead of 80/20), your premium will be lower.
Higher Out-of-Pocket Limit
If you choose a higher out-of-pocket limit by paying more coinsurance, your premium will be lower. For example, a plan with 80/20 coinsurance up to $5,000 would cost more than a plan with 80/20 coinsurance up to $10,000.
Many short term health insurance plans allow you to make either monthly payments or a single upfront payment. If you know the exact duration for which you would like to be insured, you should select a single upfront payment, which can save you anywhere from 20% to 25% in premium.
Some short term medical insurance plans allow a single deductible for the entire duration while other plans allow you to choose a deductible per incident (accident/sickness). A plan with a per-cause deductible would cost less compared to a plan that has one deductible. You can save around 8% to 10% in premium with this strategy.
When you visit healthcare providers within your PPO network, your coinsurance and out-of-pocket maximum will be much lower compared to visiting outside the PPO network provider. Some short term medical insurance plans don't provide any coverage outside the PPO network. Therefore, whenever possible, stay within the PPO network.
Some short term health insurance plans are refundable. These plans will either provide you a pro-rated refund for the unused portion or will simply allow you to stop paying installments from the time of cancellation. Make sure to review the cancellation rule carefully before selecting a plan.
Many short term health insurance plans have an enrollment fee (such as $25, $35 or $50). Additionally, many short term medical insurance plans also have a monthly membership fee (such as $15, $25). When shopping for temporary health insurance, don't only look at the premium—look at the plan's overall cost.