Keeping insured is important for your health and your pocketbook, according to a study conducted by the Robert Wood Johnson Foundation; more than 60 percent of bankruptcies in the United States were the result of medical bills.
Many Americans are finding themselves looking for temporary health insurance options, whether transitioning between jobs, recently graduating college or unemployed. While services like COBRA provide comprehensive coverage extensions for the recently unemployed, COBRA can be expensive and may not be available for some individuals and families.
In situations like these, short term medical coverage may be a good option. Short term medical coverage (STM) can last as few as 30 days and as long as 12 months, and premiums usually cost only a fraction of COBRA’s.
But finding the right STM coverage for you and your family can be confusing, and ensuring your family has adequate coverage can be a challenge. Here are some quick tips for making an informed short term medical coverage decision.
1. Lay out your coverage needs
Plan out what you want from your STM coverage, and how long you think you’ll need coverage. Most plans cover some preventative care, but won’t cover pre-existing conditions, dental work or eye exams.
Plans can also range in duration from 30 days to 12 months, depending on the rules of the state you live in and your coverage needs. Most STM plans can cover you within 24 hours of purchase. By planning out what you need from your STM plan, you can find the best coverage plan at the best price.
2. Pay attention to the details
When selecting a STM coverage plan, pay attention to details like duration of coverage, deductible and coinsurance. These details will determine how long your coverage will last, your financial responsibility and how much of your medical expenses the plan will cover.
There are many different options for short term medical coverage available, from low-cost plans with high deductibles, to plans with a higher monthly cost but low deductible.
Paying attention to these details will help you save money – and find the best STM plan for your needs.
3. Compare plans
Health insurance costs can vary depending not only on your coverage needs, but also on the provider. Get a health insurance online quote and compare plans with easy online tools. Comparing plans will give you a good idea of what short term medical coverage is available and affordable for your budget and needs.
Remember to shop around, but also make sure you have consistent medical coverage. Doing so will save you money and because many STM plans offer creditable coverage, your short term medical coverage will help ensure you and your family can be insured again in the future.
Making an informed decision about short term medical coverage can be confusing, but it doesn’t have to be impossible. Follow these simple steps and gather STM coverage information before making your purchase decision.
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