What Does Short Term Medical Insurance Cover

Short term health insurance is a type of health plan that can provide you with temporary medical coverage when you are between health plans, outside enrollment periods, and need some coverage in case of an emergency. However, to get the most out of a short term health plan, you need to understand how they work, what they cost, and what they cover.

What Does Short Term Health Insurance Cover?

Short term health insurance coverage varies greatly depending on the plan and the insurance company you buy from. These types of plans are not required to comply with Affordable Care Act (ACA) guidelines. ACA plans are required to provide certain levels of coverage—called minimum essential coverage. Short term health plans are not required to meet the same standards.

Short term medical insurance typically provides some level of coverage for: preventive care, doctor visits, urgent care, and emergency care. There may also be coverage for prescriptions. Some plans also offer cost savings for seeing in-network providers. Make sure to read the “exclusions and limitations” information before buying any plan. This will tell you what’s covered and not covered by a certain plan.

How Much Does Short Term Health Insurance Cost?

If you’re considering temporary health insurance, typical upfront costs include:

• Premium: This is the monthly fee you pay for having coverage. The premium will vary depending on the level of coverage you choose, including deductible and coinsurance, as well as the types of services covered.
• Deductible: The deductibles on short-term health plans can be significantly higher than other more traditional health plans. You pay out of pocket for services until you meet your deductible. Then your plan starts sharing costs.
• Coinsurance: This is the percentage of costs you share with your plan after you meet your deductible. It’s often shown as a percentage. Most short term plans have a deductible and coinsurance.
• Copay: This is a fee you may have to pay when you visit a doctor; usually payable at the time of the visit. Some short term plans require you to pay a copay for certain doctor visits.
• Other out-of-pocket costs: If there are health care services not covered by your short term plan, you could end up paying all costs. For example, some short term plans may not cover or may limit your coverage for maternity care, mental health or substance use services, vision care, or dental care—these are costs you’d have to pay yourself for any services you receive.

Conclusion

Short-term health plans are sold through private insurance companies. Not all companies offer this type of plan. These plans are not available through the Health Insurance Marketplace and do not conform to Affordable Care Act (ACA) guidelines. To buy a short term medical plan you can search for a private insurance company that offers them. Make sure to read all details before you buy or enroll. These plans can vary greatly in cost and coverage.

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