Short Term Insurance

 

Simply put, short term insurance is a temporary health insurance policy typically purchased to provide coverage for a limited period of time in between other insurance options.
 

What it Covers

 
The coverage term for this type of insurance plan generally runs for thirty days to twelve months depending on the insurance company.
 
The short term insurance policy does not meet the “minimum essential coverage” requirements of the Affordable Care Act (ACA). Having a short term policy is not going to help the insured avoid the penalty for not having health insurance.
Although coverage under a short-term health plan offers different health coverage depending on the company, there are some common benefits among the better-known plans.
 

• Choice of deductibles

• Outpatient doctor visits for injury and illness

• X-ray and lab testing

• Preventative diagnostic testing such as PSA screens, PAP smears and mammograms

• Hospitalization and ER visits

 

What it Doesn’t Cover

 

Since the short term policy is considered to be a type of gap coverage and is used primarily for catastrophic events, the excluded benefits are worth noting. Depending on the company and plan chosen, some of the drawbacks included are:
 

• No coverage for pre-existing conditions

• No maternity benefits

• No coverage for dental or vision services

• Limited coverage for prescription drugs

• Limited selection of providers

• Lower policy limits available

• No COBRA option available

 

Non Compliant

 
Typically a major concern for the individual considering short term insurance is whether the plan is compliant with the Affordable Care Act (Obamacare). Since the plans on the market today do not meet the guidelines set forth by the “minimum essential coverage”, the short term insurance policy does not provide an exemption from the mandatory penalty set forth in the ACA.