Affordable Care Act Short Term Health Insurance

What is Short-Term Health Insurance?

Short-term health insurance, also known as temporary health insurance, is designed to provide health coverage for a brief period of time. Generally, short-term plans are available for periods of one to twelve months, but some states allow coverage for up to three years. Short-term health insurance plans are not an alternative to the Affordable Care Act (ACA). In fact, short-term health insurance plans have fewer benefits and are exempt from the ACA’s consumer protections.

What Does Short-Term Health Insurance Cover?

Short-term health insurance plans typically cover routine medical costs such as doctor’s office visits, lab tests, and prescriptions. Some plans also cover preventive care and emergency room visits. However, short-term plans often limit the number of services that are covered and may not cover pre-existing conditions. Additionally, depending on the policy, these plans may not cover certain services such as maternity care, mental health services, or rehabilitative services.

Who is Eligible for Short-Term Health Insurance?

Short-term health insurance plans are available to individuals who are not eligible for employer-sponsored health insurance, Medicare, or Medicaid. While these plans may be less expensive than major medical plans, they are not suitable for everyone. It’s important to understand the coverage offered by short-term health insurance plans before enrolling.

The Pros and Cons of Short-Term Health Insurance

Pros

Short-term health insurance plans offer a few advantages to those who cannot afford or don’t qualify for major medical plans. For example, these plans offer a much lower premium than major medical plans. In addition, short-term health insurance plans have fewer restrictions than major medical plans, making it easier to find coverage that meets your needs. Finally, short-term health insurance plans can be purchased quickly and typically take effect within days.

Cons

Short-term health insurance plans also have several drawbacks. For example, these plans often have limited coverage and may not cover pre-existing conditions. Additionally, these plans are not subject to the same consumer protections as major medical plans, such as the ACA’s coverage of preventive care. Finally, short-term health insurance plans often have high out-of-pocket costs, including deductibles and co-payments.

Conclusion

Short-term health insurance plans are a viable option for individuals who cannot afford or don’t qualify for major medical plans. However, it’s important to understand the coverage offered by these plans and the associated costs before enrolling. If you are considering a short-term health insurance plan, be sure to compare the costs, coverage, and terms of different plans to find the one that best meets your needs.