Shopping Tips for Short Term Medical Plans
By: Donna Pleis
A short-term medical plan may be the perfect solution when you’re facing a temporary interruption in medical coverage. With a quick and easy application process, these plans often provide coverage within hours, and while the coverage is not as extensive as a major medical policy, the premiums are much lower. So, if you are in the market for a short-term medical plan, here are a few tips to guide you in purchasing a plan that’s just the right fit for you and your family.
- Anticipate your family’s medical needs, so that you don’t end up paying for a plan with more coverage than you need.
- Read the plan details carefully to determine what the plan covers and what it excludes. Pre-existing conditions are usually not covered and you can be denied coverage because of a health condition.
- Be aware of out-of-pocket costs, such as deductibles and copayments, that you will be responsible to pay, and know what your maximum out-of-pocket expense will be.
- Check the plan’s lifetime-benefit maximum. Keep in mind; you’re responsible for all expenses after this maximum is reached.
- Determine if the plan requires the use of a provider network, and does it include the hospital and doctors that you would like to use.
- Establish the correct length of time that you need coverage for. When your short-term plan ends, you will not be eligible to enroll in a standard health plan unless it is open enrollment.
- Realize that if you choose a short-term plan rather than COBRA coverage, you will not be eligible for COBRA after your short-term plan expires. And these plans don’t meet the Affordable Care Act’s coverage standards, possibly subjecting you to the Shared Responsibility Payment (tax).
You can purchase a short-term medical plan anytime of the year. But because the plans available today vary widely in coverage and cost, it pays to shop wisely. However, one thing is for sure — a temporary plan can significantly reduce your financial risk until you enroll in a standard health insurance plan. My Generation Benefits offers plans starting as low as $.59 per day and you can select the best plan for you by clicking this link.
