Temporary health insurance or term health insurance is designed to bridge gaps in healthcare coverage. Temporary medical insurance plans are no substitute for ACA health insurance plans. However, many young, healthy individuals choose to purchase short term health insurance to save money, or they feel that they don't need many of the benefits that ACA compliant health insurance provides.
These are some of the benefits of temporary health insurance plans:
ACA compliant health insurance plans are available only during an annual open enrollment period. For 2020, Open Enrollment will begin on November 1, 2019 and end on December 15, 2019. Coverage for plans purchased during this Open Enrollment will be effective in January of 2020. ACA health insurance enrollment is only possible outside the Open Enrollment Period if you qualify for a Special Enrollment Period, which is available under limited circumstances.
On the other hand, you can purchase temporary health insurance at any time.
Low Cost and Budget Friendly
Compared to ACA health insurance plans, temporary health insurance costs significantly less, even up to two or three times less than bronze level ACA health insurance.
For example, if a single male enrolls in an ACA compliant plan that includes maternity coverage, he is paying for something he does not need. In this case, short term medical insurance would be more affordable for him because it does not cover maternity. You can use the savings in premium to buy other necessary coverage such as dental or vision.
Next Day Coverage
Short term health insurance can start early as the next day or any future date you specify.
Easy & Quick Online Application
Applying for short term medical insurance is easy and quick through an instant online application on this website. You can be approved within minutes.
Several gap health insurance plans are available. These plans provide a wide variety of deductible, coinsurance and policy maximum choices.
Most short term health insurance plans allow you to cancel at any time without penalty. If you make monthly payments, you can simply stop paying for subsequent payments when you no longer need coverage.
Some temporary health insurance plans also return the unused portion of your premium if you cancel coverage before the expiration date.
Many temporary health insurance plans waive the deductible for a visit to an urgent care. If you visit an urgent care, you are only responsible for copay.
On the other hand, in ACA compliant catastrophic plans, you have to pay a high deductible (almost $7,000) before the plan starts covering anything.
In many states, ACA insurance plans for individuals and families no longer have PPO plans, only HMO. That means you have to visit a Primary Care Physician (PCP) to get a referral to a specialist. Also, HMO plans don't provide any out-of-network coverage. Catastrophic plans have a narrow network of fewer doctors and hospitals in-network.
On the other hand, temporary health insurance plans have a wide PPO network, or you can visit any provider of your choice.
You could need out-of-network coverage for many reasons; such as your favorite physician or hospital is not in the network, the doctor who provides specialized care is not in the network even if you visit a hospital that is in the network, other caregivers, such as the anesthetist, are not in the network.
Temporary health insurance has many advantages, but it also has limitations. You should review all plans carefully before purchasing.