Have you recently been laid off or otherwise found yourself out of a job? If so, one of the most devastating effects of losing your job is the loss of health insurance coverage. After all, it only takes one accident or illness to catapult you into a world of financial trouble if you do not have health insurance coverage. Therefore, if you are confident you will land another job soon that provides health coverage, you might want to consider obtaining a short term health plan.
What is Short Term Health Insurance?
As the name implies, short term health insurance is a type of coverage that is only meant to be in place for a short period of time. For this reason, it is also commonly referred to as gap plan or temporary health plan.
What is Covered by Short Term Health Insurance?
The types of expenses covered by short term health insurance are generally the same as any other comprehensive plan. Expenses that are typically covered include:
- Daily hospital room and board
- Miscellaneous hospital services
- Surgical services
- Anesthesia services
- In-hospital services
- Out-of-hospital care
Just as with any other type of insurance policy, you will still be expected to pay any applicable deductibles and the procedures that are covered will be subject to certain limitations.
How Long Can Short Term Health Insurance Be in Place?
The available term length for short term health insurance policies will depend upon the company you work with. Most companies, however, offer polices ranging in length from just 30 days to one full year. It is important to note, however, that you will have to determine a termination date when you apply for short term health coverage. Therefore, your coverage will no longer be in place once this termination date is reached. With some companies, you can cancel the policy before the termination date without any negative consequences, so ask about this option before you sign up for a policy and error on the side of acquiring a policy that is longer than you need rather than one that won't be in place long enough.
Why Should I Get Short Term Insurance Rather than COBRA Coverage?
If you are in the middle of switching jobs, you are legally able to obtain COBRA coverage to provide you with the insurance coverage you need before your new coverage begins. Unfortunately, COBRA is quite costly and many people cannot afford to keep it in place. Short term health insurance, on the other hand, is available at a reasonable cost that will provide you with the coverage you need until your new insurance policy kicks in.
Steve Klein is Mr. Insurance of Maryland. He is an independent health insurance broker, representing not just one company, but the best carriers in Maryland. His independent status enables him to offer a wide variety of health insurance plans and a policy perfect for every client's needs and budget.
Steve's agency and Web Site, http://mrinsuranceofmaryland.com are dedicated to creating educated consumers of health insurance in Maryland. Learn more about short term plans at http://mrinsuranceofmaryland.com/Short-Term-Health-Insurance.html
