Assurant is offering many options for short term health plans. Many Americans don’t have any medical insurance. Since the Affordable Healthcare Act is in force, these Americans will face penalties for not having medical insurance. If you have not signed up for a care under the Affordable Healthcare Act or AHA, you must wait until the enrollment period which starts the middle of November and the coverage will not be effective until Jan 1st of the coming year.
The Affordable Healthcare Act requires insurance companies to meet certain minimal standards to qualify as acceptable healthcare alternatives. Preventative care is necessary, covering pre-existing conditions is mandatory, allowing adults 26 and under the ability to stay on their parent’s health plan is also required, and no lifetime coverage maximum is another important part of the minimum coverage requirements. These terms are great for many people, but if you have missed the boat for this enrollment period, you want to find some solution for a serious illness or injury. No one wants anything bad to happen, but life will happen, so you should be prepared to avoid financial ruin and get the healthcare that you may need.
People may find themselves with medical coverage for different reasons. A self-employed individual may not have coverage, a person in between jobs may not have coverage, a college student may not have coverage, and many other Americans don’t have coverage because they simply can’t afford it. Traditional medical insurance can be expensive and if you have missed out on AHA, you are unprotected.
Short-term Medical Insurance plans don’t meet the guidelines of adequate coverage under ACA; however, these plans can be a good option for short term coverage. The average time period is between 30 days to 6 months. Short-term coverage is meant to cover individuals that experience an injury or illness within the coverage period. Pre-existing conditions generally are not covered. Any condition that was diagnosed prior to getting insured by the insurance is not covered.
Those that are looking for interim medical coverage to tide them over for a short period of time are good candidates. Those who are relatively healthy are good candidates. Preventative healthcare is not covered; these plans are exclusively for an injury or illness that occurs within the policy time limits.
There are deductibles and coinsurance minimums that must be met before the short-term plan will kick in coverage. It is important to understand all of the restrictions that accompany these plans. Those that are laid off and are in between jobs usually have the option of COBRA coverage for a period of time; however, COBRA premiums are quite expensive and if you are unemployed, it may be very difficult to afford this coverage. A short-term plan will provide you some protection if a calamity happens during the policy time limits. A serious illness or injury can be very expensive, and this is a big factor in many people going bankrupt. One illness or injury can cause financial havoc and create enormous debt.
Many Americans are not aware that a short-term health care plan does not meet the minimum requirements of ACA, so you will still be penalized for not having coverage. Since the average plan is no more than 6 months, the insured individuals face another challenge once their policy expires. A renewal is not guaranteed at all. In fact, the company will look at you as though you are a new individual, and if you have developed any medical condition while on the plan, this condition will now be a pre-existing condition that will likely get you denied by the underwriting department. You can shop around for other short-term plans, but this same challenge will be a factor that you will have to deal with. Short-term medical insurance plans are not a long term solution, but they can provide some protection for you during short periods of time when you find yourself without any medical coverage at all.
It is important to compare short-term plans side by side and determine which one will meet your budgetary needs and your coverage needs. Review each plan closely, so you will not experience any surprises in the unfortunate event you may need the coverage. As a consumer know what you are buying and realize that this is a temporary solution not a long term solution for medical insurance coverage.