Short Term Health Insurance

There are some instances where you may need short term health insurance for a brief period of time. For instance:

  • You are in between jobs
  • A student or recent graduate
  • A non-U.S. citizen
  • Under temporary employment
  • You missed the open enrollment period for health insurance

In these cases, short term health insurance (also called temporary health insurance) could be the answer. Short-term health plans make sense if the following is true:

  • There are no pre-existing medical conditions
  • There is a definitive period of time in which coverage is needed until another health insurance plan takes effect

What are the advantages of short term health insurance?

  • Simple Underwriting Usually takes no more than a couple medical questions.
  • Low Cost Premiums for short term health insurance are generally much lower than long-term health insurance plans.
  • Credible Coverage Helps to fill in gaps for periods you are between jobs.

Are there disadvantages to short term medical insurance?

  • Pre-Existing Conditions Short term health insurance plans generally do not cover pre-existing conditions.
  • Limited Duration Can be purchased for just a few days to several months; however, the plan generally cannot be extended beyond a pre-determined maximum coverage date.

Can a short term health insurance plan be continued once the term ends?

Technically, it cannot. Although most insurance companies will let you purchase multiple short-term plans, it is important to note that each term begins a new contract; therefore, it is technically re-written and not renewed. This means that a medical problem that occurred under one short-term plan would become a pre-existing condition under the new plan. That is why short term health insurance plans should be used in temporary health insurance coverage situations.