You may be wondering what to do if you do not want to use your expensive COBRA coverage option, but are leery of going without health insurance while looking for a new job, waiting for insurance to start at a new job or while you are waiting for the beginning of your coverage on an independent insurance plan. Short term health insurance can provide a low cost short term option to help you fill in the gaps you have in coverage.
Short term health insurance can be very inexpensive. Rates can be as low as $40.00 a month. However the plans all operate with a high deductible that must be met before insurance begins to pay medical costs. Some plans provide full coverage once you have met the deductible other have additional coinsurance. If you are pregnant most short term health insurance will not cover you, and if your spouse is pregnant they may not cover you on an individual policy as well. Generally short term health insurance does not cover well medical visits or other routine care that would fall under an annual doctor’s visit.
Short term health insurance policies have a time limit in how long they will provide coverage you can receive coverage for one month and some policies will extend it up to three months. These policies are designed to protect you and your assets during the short lapses that you may have in your regular insurance coverage.
You may consider using the policies if you do not want to have a preexisting condition or waiting clause on your next health insurance.
Since the policies are so inexpensive it may be worth the little bit of money to get short term health insurance. Additionally many alumni organizations can provide you with a contact and possible discounts on the policies when you first graduate. This will cover you while you look for a job and wait until your health insurance policy begins at your new employer or until the next annual enrollment period for a new individual health plan.