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7 Things You Need to Know About Short Term Health Insurance Between Jobs and Obamacare

7 Things You Need to Know About Short Term Health Insurance Between Jobs and Obamacare

Posted Jun 04, 2015 by Author

The best health insurance plan for you will change from year to year. Life circumstances may even require you to switch coverage more frequently. When you find yourself between major medical insurance plans, consider short term health insurance to help protect your finances.1

Short term health insurance includes benefits for unexpected health care—ambulatory services, emergency department visits, hospital care, surgical services and more. Here are seven things you need to know about this option:

1. Short term medical coverage can be a smart solution between jobs and in many situations. 

Sometimes, you can’t think too far ahead. This temporary health insurance option can be a good fit for those who:

  • Missed Obamacare open enrollment
  • Are in between jobs with employer-sponsored health insurance
  • Work temporary, seasonal or part-time jobs
  • Are in a waiting period for employer health insurance benefits
  • Recently graduated college or turn 26 and age out of their parent’s health plan
  • Are newly divorced and no longer eligible for their spouse’s health insurance
  • Qualify for Obamacare special-enrollment period and need coverage until they select a major medical health insurance plan and reach its effective date 

Need more reasons short term medical might be the right plan for you?

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2. You can customize temporary coverage to meet your needs.

Short term health coverage can be tailored to your budget and health care use. Depending on the plan you select, you can choose your:

  • Plan length—depending on where you live, you can select a policy that lasts 30 to 364 days
  • Copay
  • Deductible
  • Coinsurance percentage and out-of-pocket amount
  • Supplemental products (i.e., Telemedicine and Rx Pay Card) that help reduce out-of-pocket health care expenses

3. You can keep your doctor with short term coverage.

You are not restricted to a provider network, though you may have access to discounted medical services if you utilize preferred provider organizations associated with the plan.

4. Short term medical premiums can be a fraction of major medical premiums.

In terms of what you pay each month for coverage, short term health plans typically cost less than major medical plans. Keep in mind that, in general, the lower your premium, the higher your deductible and out-of-pocket costs—and vice versa. You can also make a single premium payment for your entire policy period, which may provide additional savings. 

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5. When the short term is longer than expected, you can get another plan.

If you’re still not ready for major medical insurance when your short term medical coverage-period ends, you may be able to apply for another plan. Each short term medical plan application initiates a new short term medical policy that is not an extension of your previous policy. You must answer health history questions and may be denied coverage, even if you were approved in the past.  

Note: Your ability to apply for subsequent short term health insurance policies depends on state laws.

6. You can buy a short term medical plan online, within minutes.

It is relatively quick and easy to apply for short term medical insurance. Once you make a plan selection, you can practically complete the process during a TV commercial break. Simply enter applicant details and contact information, answer a few brief health history questions, and provide payment details.

When you apply, be prepared with the following for each applicant:

  • Full name 
  • Date of birth 
  • Health history
  • Contact information
  • Payment information

7. Short term medical coverage begins almost immediately.

Forget waiting periods. When you need temporary health insurance coverage, you usually need it as soon as possible. Short term medical plans begin as soon as the day after you apply. How’s that for on-demand? 

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Have questions about short term health insurance? Need help selecting a plan? Call 888-839-7679 to talk to an IHC representative, or request an insurance producer contact you.


1 SHORT-TERM MEDICAL EXPENSE (STM)
THIS IS A SHORT TERM HEALTH BENEFIT PLAN THAT IS NOT INTENDED TO QUALIFY AS THE MINIMUM ESSENTIAL COVERAGE REQUIRED BY THE AFFORDABLE CARE ACT (ACA). UNLESS YOU PURCHASE A PLAN THAT PROVIDES MINIMUM ESSENTIAL COVERAGE IN ACCORDANCE WITH THE ACA, YOU MAY BE SUBJECT TO A FEDERAL TAX PENALTY. ALSO, THE TERMINATION OR LOSS OF THIS POLICY DOES NOT ENTITLE YOU TO A SPECIAL ENROLLMENT PERIOD TO PURCHASE A HEALTH BENEFIT PLAN THAT QUALIFIES AS MINIMUM ESSENTIAL COVERAGE OUTSIDE OF AN OPEN ENROLLMENT PERIOD. THIS POLICY INCLUDES A PRE-EXISTING CONDITION EXCLUSION PROVISION.

About The IHC Group 
The IHC Group is an organization of insurance carriers and marketing and administrative affiliates that has been providing life, health, disability, medical stop-loss and specialty insurance solutions to groups and individuals for over 30 years. Members of The IHC Group include Independence Holding Company (NYSE:IHC), American Independence Corp. (NASDAQ: AMIC), Standard Security Life Insurance Company of New York, Madison National Life Insurance Company, Inc. and Independence American Insurance Company. Each insurance carrier in The IHC Group has a financial strength rating of A- (Excellent) from A.M. Best Company, Inc., a widely recognized rating agency that rates insurance companies on their relative financial strength and ability to meet policyholder obligations. (An A++ rating from A.M. Best is its highest rating.) Collectively, the companies in The IHC Group provide insurance coverage to more than one million individuals and groups. For more information about The IHC Group, visit www.ihcgroup.com.

About IHC Specialty Benefits, Inc.
IHC Specialty Benefits, doing business as Health eDeals Insurance Solutions is a full-service marketing and distribution company that focuses on small employer, individual and consumer products. Health eDeals markets products through general agents online, telebrokerage, advisor centers, private label and directly to consumers. For more information about Health eDeals visit http://www.HealtheDeals.com.