Understanding Short Term Health Insurance and What it Means for You

Short-term health insurance can be a good option for those who are between jobs, traveling abroad, or don't qualify for comprehensive health insurance. However, it is important to understand exactly what this type of coverage can and cannot do before committing to a plan. Here is what you need to know about short-term health insurance and what it means for you.

Short-term health insurance plans are designed to offer coverage for a short amount of time, usually six or twelve months. These plans can help bridge the gap between long-term health insurance, such as the Obamacare plans, and those who may not qualify for a long-term plan due to pre-existing conditions.

These plans often cost less than long-term plans, but they are also more limited in what they cover. Depending on the policy you purchase, your coverage can include preventive care, doctor's office visits, hospitalization, lab tests, and even prescription medications. However, as with all insurance, it is important to know exactly what you will be covered for under your plan before purchasing.

Because these plans offer less coverage, they are not approved by the Affordable Care Act. This means that you will not be eligible for the financial assistance that comes with ACA-approved plans. However, because of the limited coverage, this may be the more cost-effective option for those who qualify.

The bottom line is that short-term health insurance can be a great solution for those who don't qualify for long-term health insurance, are between jobs, or are traveling abroad. It is important to understand what you will be covered for and how much the plan will cost you in order to get the most out of your policy. With a thorough understanding of what short-term health insurance provides and how it works, you can make an informed decision that is right for your needs.

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