Short-term health insurance covers temporary medical costs when you are late for enrollment periods or need some extra cash for unprecedented medical emergencies. It can be purchased at any time of the year. The coverage of short-term health insurance plans varies depending on your insurance company and policy type.
This plan doesn’t necessarily have to comply with the guidelines of the Affordable Care Act (ACA)-compliant Obamacare plans regarding minimum essential coverage.
Coverage and Cost
Short-term health insurance provides coverage for a period less than the standard ACA -compliant plans. It provides coverage of 30-90 days, whereas ACA-compliant plans provide long-term coverage.
Similarly, short-term health insurance plans are more expensive than standard ACA-compliant health insurance plans. They may cover preventive care, urgent care, emergency care, doctor visits, and prescriptions. However, different insurance companies have various exclusions and limitations on coverage.
Comparison
Short-term plans can be canceled at any point without paying any penalties, whereas standard ACA plans include penalties if they are canceled before the policy ends. The short-term health insurance plans don’t cover pre-existing conditions and provide limited coverage for most medical conditions. On the contrary, ACA plans offer comprehensive coverage, including mental health care, maternity care, etc.
How to Buy Short-Term Health Insurance
Short-term health insurance plans can’t be bought from the Marketplace as they don’t adhere to the standards of health insurance as mandated by the Care act. Only ACA-complaint plans are available on the Marketplace. You must enroll in the ACA plans within the enrollment period. Short-term plans are only available at some specific insurance companies.
When to Buy Short-Term Health Insurance
If you miss the period of open enrollment for ACA plans, have recently transitioned off from your parents’ health plan, or your traditional plan ended for some other reasons like job loss, you can purchase short-term health insurance plan.
This is what you need to know about short-term health insurance. Want to learn more about the best health insurance options? Contact the experts at VGW Walker Insurance in Texas. We look forward to helping you with all your coverage needs.
