Short Term Health Insurance in Florida
Short-term health insurance in Florida is a non-ACA-compliant health insurance plan that provides coverage for individuals for a short period (usually between a month and three years maximum). Though limited in coverage compared to Affordable Care Act plans, it offers coverage to individuals having gaps in coverage, like those making a job transition or changing location. It is also available to persons seeking temporary healthcare coverage for other reasons. Short-term health insurance, like most non-Obamacare health plans, does not cover pre-existing conditions.
For individuals seeking cover at critical times, short term health insurance does not only provide coverage for a variety of healthcare services but is also available at a low cost. Some of the downsides of this health insurance plan are that it is time-specific (it has limited duration) and comes with high deductibles. To mitigate against deductible costs, it is advisable to combine it with a Fixed-Indemnity health insurance plan.
Before buying short-term health insurance, contact a Florida-licensed health insurance agent to explain to you how the plan works and also what the plan does not include.
What is Considered Short Term Health Insurance?
Short term health insurance is an insurance plan that provides temporary health insurance coverage for individuals seeking short term low-cost coverage for medical conditions. It is a low premium health plan that does not meet Minimum Essential Coverage (MEC) of the Affordable Care Act Bridges the gap in coverage between periods when an individual may lack coverage due to location, job-related issues, or other reasons.
What is the Purpose of Short Term Medical Insurance?
Though the purpose for buying a short-term health plan may differ for individuals, basically it can be for the following reasons:
To bridge the coverage gap and avoid out-of-pocket healthcare payments for individuals who are waiting to get a more comprehensive health plan. It is also beneficial to people undergoing job transition, who lost their employer-provided health insurance or are out of the coverage area of their healthcare plan
To save on costs of healthcare due to its low premium. Short-term health insurance charge lower premium than ACA-compliant plans because it provides less coverage
To get a temporary health plan for individuals who may not need a long-term health plan for emergency cases and need a plan they can cancel at no extra cost.
What is Short-Term Health Insurance for?
Short term insurance is a temporary solution primarily for providing emergency services coverage to those without other major medical policies. Though short term health insurance coverage is not ACA compliant, it is useful for the following reasons:
Saving on the cost of healthcare due to its low premium (cost about 50% less than ACA healthcare plans)
Bridging the gap in coverage in the absence of a long-term comprehensive health plan
Getting healthcare coverage at a low cost for a certain duration
Providing coverage to individuals who missed or do not qualify for the open enrollment
Adding more comprehensive coverage to Medicare
As a temporarily alternative for individuals that missed Affordable Care Act (ACA) open enrollment period and do not meet the criteria for the Special Enrollment Period (SEP)
Short term health insurance is for individuals looking to avoid healthcare coverage lapse for a certain period when a comprehensive health insurance plan coverage is not an option.
Individuals who are under employer-provided health insurance plans or those seeking to change jobs lose coverage once they are no longer under the employment of their current establishments. Likewise, if you are in areas outside the coverage range of your health insurance plan, you will lose coverage and become exposed to out-of-pocket payments for any health issue that may arise. Under the above conditions, you can use short-term health insurance to overcome the issue of lack of coverage within a short period.
What are the Types of Short-Term Health Insurance?
The types of short-term health insurance in Florida depend on:
Length of coverage - In Florida, the duration of short-term health plans ranges between 1 to 12 months, however, the plan is renewable for up to 36 months
Coverage - Unlike ACA, short term health insurance does not offer coverage for pre-existing health conditions, but some insurance companies offer short-term health insurance with extra benefits like:
Coverage for prescription medication
- Mental health and substance abuse treatments
Network provider - The type of short-term health insurance can also depend on the network service provider that provides healthcare services. A policyholder can choose from network providers that offer in-network services, out-network services, or a combination of both. Short term health insurance types can be Health Maintenance Organization (HMO), Preferred Provider Organization (PPO), or Point-of-Service plan.
Do you Need Short-Term Health Insurance in Florida?
It depends on the situation you find yourself in, if you are looking for a long-term comprehensive health insurance plan, short-term coverage should not be the choice. However, generally, you can get a short-term health insurance plan in Florida if you do not have pre existing conditions and:
Are looking for a plan to provide temporary healthcare coverage for a short duration
Missed the healthcare enrollment period and need a temporary coverage before the next enrollment
Traveled outside the coverage range of your primary health insurance plan
Need a low-cost health insurance plan for coverage for a short period
You do not need short term health insurance if you have ACA health insurance. Also, you get an ACA health plan if you are eligible and can afford one because the ACA has more comprehensive coverage and longer duration.
Why Do you Need Short-Term Health Insurance?
You need short-term insurance if you:
Can not afford to pay for Affordable Care Act health insurance and need a cheaper alternative that can provide some level of insurance coverage (Note: If you are not purchasing ACA coverage due to unaffordability, you can apply for government subsidies, which can drastically lower your out-of-pocket costs.)
Missed the open enrollment and need coverage before the next enrollment season
As a young adult and need a replacement for your parent-provided health insurance
No longer have access to employer-provided health insurance and need coverage while you figure out how to get a new insurance plan
Need a health insurance plan to add coverage to your Medicare insurance
Need a new job and you are looking for a health insurance plan to replace your previous policy
Attend college and not under your parent's health insurance plan
Short-term health insurance offers you the opportunity to have healthcare coverage while waiting for the next open or special enrollment period. In Florida, it gives individuals the opportunity to have healthcare coverage for a certain duration without breaking the bank. However, it is not a comprehensive health plan because, unlike ACA health plans, it does not cover pre-existing conditions and may not take care of all your medical needs.
If you are looking at short term health insurance as a solution to your immediate healthcare need, contact a knowledgeable Florida-licensed health insurance agent. An experienced agent can assess your insurance needs, your health, and your budget to advise if short term coverage is a viable solution for you.
How Much Short-Term Health Insurance Do you Need?
The size of short-term health insurance you need depends on your health insurance coverage needs, your ability to pay for the benefits, and the amount you pay as out-of-pocket payments. You may need additional coverage that is not part of the coverage of traditional short-term health insurance. Some insurance companies offer extra benefits, such benefits come with extra costs and you will pay more for them. Apart from health needs, your short term health insurance can also depend on the:
Size of the term deductible - Deductibles are out-of-pocket payments you make towards your healthcare treatments and most insurance policies require you to spend up to the amount indicated before your insurance company steps in. Unlike per-claim deductibles where you have to meet the deductible for every incident or claim you make on a policy, a term deductible is one-time spending for the duration of the plan. Short-term health insurance comes with a low premium but has high deductibles, usually between $2,500 to $15,000.
The percentage of your healthcare cost you pay towards treatment (Coinsurance) - The portion of the cost of the treatment you pay can be as high as 30%, or as low as 0% (the insurer pays all the bills). You pay coinsurance after you have spent an amount equal to the deductible. and until you reach the coinsurance maximum-out-of-pocket C-MOOP). Maximum-out-of-pocket is the most you pay for benefits for in-network care and services within the plan’s duration before your insurance company takes over and pays 100% of the rest costs (up to the plan’s Annual Dollar Limits)
The total risk exposure in the event of an emergency (monthly premium + deductible + C-MOOP)
The lifetime limit - The maximum benefit per person, per the policy term
The amount you pay as an emergency fee at the ER in the event of an emergency. This cost is flexible and depends on the types of treatments and services you receive
Short term health insurance is not ACA-compliant and may not cover most preventive healthcare treatments, check with a Florida-licensed health insurance agent to get details before you buy.
What Short-Term Health Insurance Coverage Do you Need?
Before you buy short-term health insurance, consider your future healthcare needs, and the cost of the plan (compare if it will be cheaper to pay out-of-pocket for healthcare treatments). It is important to know the available benefits and also determine how long the plan will be active.
In Florida, short-term health insurance plans run between a month and 12 months but it is renewable to a maximum of 36 months. The plan is non-guaranteed renewable, so make sure the active period falls within the time you need insurance protection.
If you are buying multi-year short term health insurance coverage, you may get additional benefits which include:
Coverage for some pre-existing health conditions if the policy is active for more than a year (check your insurer’s plan details)
Lower cost of coverage
Coverage for some of the essential health benefits
Discuss your need with a state-licensed agent for advice on short term health insurance to know if it will meet your expectations.
How Does Florida Short Term Health Insurance Work?
Short-term health insurance works like any other health insurance coverage in Florida, a insured policyholder pays a monthly premium for protection against the costs of future medical treatments and healthcare services. The healthcare costs are split between the insured and the insurance company in a ratio as agreed in the policy contract.
To get coverage, the insured makes some out-of-pocket payments as a thier share towards offsetting the cost of treatment. The out-of-pocket costs include:
Copays - These are fixed dollar amounts the policy holder needs to pay when visiting a doctor, it may be for drug prescriptions or another cost that is not part of short-term health insurance coverage.
Coinsurance - The insured pays a percentage of the cost of treatment after spending up to the deductible amount. Coinsurance is calculated as a percentage of the covered amount, for instance, if your coinsurance is 30%, you will pay 30% of the bill, while the insurance company pays the remaining 70%. Until you reach the out-of-pocket maximum, you will pay 30% of the cost of all treatments. For example, for a bill of $12,000, you will pay $3,600 (30% of $12,000) and the insurance company pays $8,400 (70% of $12,000).
Deductible - This is a fixed amount the insured policyholder must spend on healthcare treatment before the insurance provider begins to pay. For instance, if your deductible for short term health insurance is $3,000, you must spend this amount on treatment before the insurer steps in. For a medical treatment that cost $10,000, you must spend $3,000 before the insurance company start to pay
Maximum Out-of-Pocket (MOOP) - this is the maximum amount an insured will pay toward a covered medical treatment during the term of the short term health insurance plan. For instance, if your out-of-pocket maximum is $6,600, after spending this amount on deductible and coinsurance, the insurance company will pay the rest of the bill.
Out-of-pocket Maximum = Deductible + Coinsurance
Short term health insurance uses in-network and out-of-network doctors. In-network doctors offer services at a discounted rate and this leads to a lower cost of insurance.
For detailed information on how short-term health insurance works in Florida, contact a Florida-licensed health insurance agent with access to multiple insurers and coverage options to choose from.
What is Covered by Short Term Medical Insurance in Florida?
In Florida, theshort-term health insurance provides coverage for:
Emergency room (ER) treatments
In-patient and out-patients treatments
Unexpected illnesses and injuries
The benefits that come with short-term health insurance depend on the insurance company and the plan type. It is important to note that though some short term health insurance plans cover some essential health benefits, it is not ObamaCare compliant and does not cover most.
Details of what coverage you have under short term health insurance in Florida are available from a Florida-licensed health insurance agent.
What is Short-Term Health Insurance Good for?
Short-term health insurance is good for the following reasons:
It may be a temporary health coverage for individuals that missed out on the open enrollment
It provides coverage for persons not eligible for ACA health plans
It fills the gap in coverage for individuals changing jobs
It is a good insurance plan for young adults who have attained the age of 26 years and are no longer under their parent's health insurance plan
The benefits of short term health insurance are wide and you may need informed advice to know them all, seek the nearest state-licensed insurance agent for more information.
What Does a Typical Short-Term Health Insurance Include?
Basically, in Florida, short-term health insurance coverage includes the following:
Doctor’s visits
Emergency room (ER) treatments
Making out-of-pocket payments (deductible, copay, and coinsurance)
Urgent care need
Preventive care
Short term health insurance has a limit to its coverage, hence, you may need to combine it with supplemental health insurance. It is advisable to ask a state-licensed health insurance agent about the limit of short-term health insurance before buying one.
What Types of Items Does Short-Term Health Insurance Cover?
In Florida, Short-term health insurance covers a variety of items including but not limited to the following:
Emergency healthcare services
Doctor visits
Hospital visits
Surgery
Lab tests
Urgent care visits
Prescription drugs
Intensive care
Some insurance companies offer coverage for preventive care and some pre-existing conditions, it is important to read through the fine prints before signing for short term health insurance. Also, when shopping for short-term health insurance, speak with a Florida-licensed health insurance agent. Health insurance agents are knowledgeable on health policies and will tell you the limit of your insurance plan.
FAQ - Does Florida Short Term Health Insurance Cover:
Does Short Term Health Insurance Cover Prescriptions?
Most temporary coverage Florida health plans come with prescription drug coverage. The amount of coverage depends on the selected plan, but as a general rule, this coverage is not as comprehensive as it is on ACA-compliant plans.
Does Short Term Health Insurance Cover Mental Health?
Short term health insurance in Florida usually does not cover mental health services. If mental health coverage is needed, you need a plan that is compliant with the Affordable Care Act, such as:
Employer sponsored coverage (group health coverage)
Plans purchased on the health marketplace
Florida’s Children’s Health Insurance Program (CHIP) and Medicaid
Does Short Term Health Insurance Cover Surgery?
Yes. Short term health insurance was created to protect the insured in the case of an emergency care, and therefore also a surgery. The actual coverage amount of the surgery depends on the conditions of your policy, which outline how much of the claim you are taking on as your own out-of-pocket costs (through deductibles, copays, and coinsurance). In the process, surgeries and the associated costs may or may not exhaust your policy’s maximum out of pocket (MOOP) costs, after which your short term plan pays up to its limits. If the MOOP of the chosen plan is too high and you don’t think you can afford to pay all of that out of your pocket, ask your health insurance agent about adding supplemental hospital indemnity and/or critical illness coverage, which can help you offset those costs.
Does Short Term Health Insurance Cover Birth Control?
Unlike ACA compliant health insurance, which is required to cover the cost of birth control in Florida, short term plans usually do not cover it.
Does Short Term Health Insurance Cover Pre-Existing Conditions?
The key distinguishing feature of a short term health insurance was always that it does not allow pre-existing conditions. As of 2022 that has started to change. As short term health insurance was becoming more mainstream and commonly accepted, some insurers that offer their coverage to Florida residents started offering plans, where certain pre-existing conditions can be covered after the insured has had the plan for a year or more.
Speak to a knowledgeable Florida-licensed health insurance agent who works with a variety of insurers to find out which short term plans cover your pre existing condition.
Does Short Term Health Insurance Cover Preventive Care?
Similar to the preexisting conditions, some short term major medical plans available in Florida offer preventive care coverage. This coverage option comes at an extra cost. If you want your insurer to cover preventive coverage, ACA-compliant coverage may be a more appropriate and possibly less expensive choice. Make sure to discuss your plan options with a knowledgeable health insurance agent, who can evaluate your needs and provide multiple options to fill them.
Does Short Term Health Insurance Cover Pregnancy?
No, short-term health insurance does not cover pregnancy. Pregnancy is a pre-existing condition and unlike ACA health coverage, short term health insurance excludes coverage for pregnancy.
Does Short-Term Health Insurance Cover Abortion?
No, short-term health insurance does not cover abortion, some states have strict laws on abortion. If you need information on healthcare services that may not be part of short term health insurance coverage, contact a state-licensed health insurance agent.
What is Not Covered by Short-Term Health Insurance?
In Florida, short-term health insurance does not cover:
Immunization
Dental healthcare
Vision
Pre-existing conditions
Pregnancy
Preventive care and certain other services
Mental health
Substance abuse
However, some insurance companies may offer limited forms of these services.
It is important to study the policy document to know items that do not have coverage under the plan. Also, make sure to contact a state-licensed health insurance agent for clarification if you have any doubt about your short term health insurance coverage.
What Does Short-term Health Insurance Typically Exclude?
Short-term health insurance excludes maternity care because of the limited time of the plan and the complications that may arise from childbirth. Some insurers may offer limited coverage for other exclusions due to competition.
A Florida-licensed independent health insurance agent will help you with details of coverage offered by several insurers from which you can choose the one that meets your needs.
What is an Example of Short-Term Health Insurance?
Short-term health insurance is a health insurance plan for individuals who need low-cost healthcare coverage for a short duration. It provides coverage for those that lost their healthcare coverage or were not able to get an ACA health insurance plan and want immediate protection to avoid a lapse in coverage.
Short term health insurance has limited coverage and policyholders usually combine it with an accident and/or hospital indemnity plan to cover the costs of deductibles, copays, coinsurance, and ER treatments.
In Florida, short-term health insurance is a popular choice among individuals:
Making job transition
That missed the health insurance open enrollment season
Who did not qualify for the Special Enrollment Period (SEP)
Getting their first health insurance plan
What is the Difference Between Short-Term and Long-Term Insurance?
There are significant differences between short-term and long-term (ObamaCare / ACA) health insurance, and the comparison covers different areas. There are advantages and disadvantages to both plans. Some of the differences between short-term and long-term health insurance policies include:
Time constraint - As the name implies, short term health insurance is only active for a short duration, usually between a month and 12 months (though you can renew it up to 36 months). On the contrary, long-term health insurance does not have a time limit, the policy remains active if the policyholder continues to pay a premium. It renews annually.
Availability - Unlike ACA plans which you can only buy during the open enrollment season, or special enrollment period (if you meet the qualifying conditions), short-term health insurance is available at all times.
Flexibility - Short term health insurance allows for a flexible time frame, individuals pay for the protection they need within a time frame of 1 to 12 months. Short-term health insurance leaves you options on the term of your policy, this is not available on ACA health plans. For instance, if you need coverage for three months before getting new employer-provided health insurance, you can buy a three months plan. Also, it is quicker and involves less process to get short term health insurance than the ACA health coverage.
Costs - Short-term health insurance comes with lower premiums than ACA health plans.
Limited coverage - short term health insurance provides less coverage than ACA health plans.
Pre-existing conditions - Short-term health insurance does not cover pre-existing health conditions as ACA health plans do. If you develop a health condition during the first term of your short term health insurance, it will be considered a pre-existing condition and may not be covered on renewal of the plan. A newly developed condition can serve as a reason to deny the annual policy renewal.
ACA Requirements - short-term health insurance may not cover some of the ten essential health benefits which are compulsory for every ACA health plan.
Tax subsidy - The use of government tax credit to subsidize premiums is not available for short term health insurance, while eligible individuals can use them to subsidize their ACA premiums, to drastically lower the cost of coverage.
Both short-term and long-term health insurance plans have their pros and cons, the trick is to find those advantages that are beneficial to your needs. Contact a knowledgeable Florida-licensed health insurance agent for an extensive list of the advantages of each plan type and to see which one works best for your needs.
Do I Need Short-term Health Insurance if I Have ACA Insurance?
No, you do not need short-term coverage if you have ACA insurance, ACA insurance offers more extensive coverage than short-term health insurance. ACA insurance affords you the opportunity of getting a wider variety of healthcare treatments, furthermore, you may get to enjoy government tax subsidies on your ACA plan. ACA plans:
Do not have a time limit on how long you can keep the plan, and
Do not place annual dollar limits on the essential health benefits, like short term health insurance does.
Short-term health insurance should only serve as an alternative if you are not on ACA insurance. Whatever plan you may decide on, you should contact a state-licensed health insurance agent to get advice on what plan is best for your needs.
Do I Need Hospital Indemnity Insurance if I Have Short Term Insurance?
You don't need to combine hospital indemnity insurance with short term health insurance. However, combining hospital indemnity insurance with short-term health insurance will be beneficial in paying for the cost of some services and treatments that lack coverage under short term health insurance. You can pay bills like deductibles, copays, and coinsurance using hospital indemnity insurance.
Short-term health insurance has a low premium but comes with high deductibles which without insurance, you will have to pay out-of-pocket. For instance, a $50,000 treatment with a deductible of $15,000 and coinsurance of 70/30 may be a daunting ask for any average Florida resident. After paying a deductible of $15,000 and you are still short of your coinsurance maximum-out-of-pocket, you will pay 30% of the remaining bill. In total, that is $25,500 ($15,000 + (0.3 x $35,000)) out-of-pocket payment for the treatment, which a hospital indemnity insurance would have taken care of.
Apart from deductibles, copays, and coinsurance, individuals also buy hospital/accident indemnity insurance to cover the costs of ER treatments or hospitalization. If you are considering getting short term health insurance, ask a state-licensed health insurance agent for his advice on the most appropriate supplemental health plan to combine with your plan.
Who Can Get Short Term Health Insurance in Florida?
In Florida, any adult without a pre-existing condition who needs health coverage for a short term and is capable of paying the premium can get short-term health insurance. Short-term health insurance is popular among healthy individuals of age 65 years and below.
Consult a state-licensed health insurance agent and explain your health needs, short term health insurance may be the solution you seek.
Who Qualifies for Short-Term Health Insurance?
To qualify for short-term health insurance, an individual must be 65 years old or below. The applicant must not have been treated or on medications for any of the following conditions in the previous five years:
Stroke
Chronic obstructive pulmonary disease (COPD) or emphysema
Cancer or tumor
Heart diseases (including heart attack)
Crohn's disease
Liver disorder
Degenerative disc disease
Chest pain or had heart surgery
Rheumatoid arthritis
Diabetes
A degenerative joint disease of the knee
Alcohol abuse or substance dependency
Neurological disorder
HIV or AIDS
Pregnant at the time of applying for the plan
Who Needs Short-Term Health Insurance?
Short-term health insurance is for individuals who need coverage and cannot wait, who missed open enrollment on the federal marketplace, or simply looking to save with a less expensive insurance alternative that will provide emergency coverage in case of a medical emergency.
Generally, you need short term - temporary insurance if:
Unable to apply for ACA - ObamaCare (ACA) coverage is available to individuals who register during the open enrollment period which normally runs between early November and mid-January of the following year. Florida residents who miss out on registration during enrollment, and do not qualify for the Special Enrollment Period can use short-term health insurance as a stop-gap coverage in between the enrollment seasons.
The currently unemployed - Florida employees who are under employer-provided group health insurance have the option of getting insurance coverage after leaving their employment. Consolidated Omnibus Budget Reconciliation Act (COBRA) makes it mandatory for the employer to continue providing health insurance coverage for a limited period irrespective of the circumstances of the job loss. This type of health coverage is usually much more expensive than what the employee is used to paying, since now this individual must pay the full cost of the coverage, including the portion formerly paid by the employer.
In Florida, an ex-employee will receive a minimum of 18 months of healthcare coverage under COBRA insurance. However, the policy will come to an end if the employer cancels the group insurance plan, the individual fails to pay a premium, or participates in fraudulent activities. If you do not have coverage under COBRA insurance or if the cost is no longer affordable, short term health insurance is a good alternative before getting new insurance (as long as you can qualify).
College student - If you are a college student and 26 years old, you will no longer enjoy coverage under your parent’s health insurance. You may need short-term health insurance until you can get ACA-compliant traditional coverage on the marketplace, through a spouse, or an employer.
Changing job - individuals that have employer-provided group insurance and leave their jobs for a new one usually lose their coverage at the end of the paid period (usually the end of the current month). Short term health insurance can fill the gap in coverage until they get new health insurance.
Waiting for the commencement of a new health insurance plan - some health insurance plans have lengthy waiting periods. Some employers also have waiting periods, during which the employee is already employed but is not getting the full health benefits. If you have new health insurance that is yet to become active due to the long waiting period, you can get short-term health insurance to provide coverage during the waiting period.
Who Should Get Short-term Health Insurance?
Short-term health insurance is generally a good health plan for healthy (without pre existing) conditions) individuals who did not get an ACA health plan during the open enrollment period and did not qualify for the special enrollment period. Also, it is a cheap plan for individuals who can not afford the ACA-compliant health plan, do not qualify for a premium tax subsidy, and do not have a Medicaid plan.
Short term health insurance is a good option to prevent a lapse in coverage for those who do not have coverage due to a change of job or are waiting to enroll in ObamaCare health plans. Whatever the scenario, if you desire an affordable health insurance plan in Florida that offers coverage for a limited time, you may like short-term health insurance.
To get more informed on why short-term may be a good option to meet immediate healthcare coverage, contact a Florida-licensed health insurance agent.
What are the Benefits of Short-Term Insurance?
The major benefits of short-term health insurance are:
lower cost than the other major health plans,
flexibility, and
financial protection in the event of an emergency.
It does not require enrollment and you can easily buy it with fewer requirements. It is a flexible plan that does not compel commitment.
Short term health insurance also provides instant coverage, no need to wait. Some of the most appreciated features of short-term health insurance are that it is customizable (you can model it to meet individual needs), and you can buy it at any time of the year.
Discuss with a state-licensed insurance agent to understand the benefits of short-term health insurance and how they can be applied to meet your health insurance needs.
Why is Short-term Insurance Good?
Short-term health insurance is good for the following reasons:
Low premium - short-term term health insurance is cheaper than other conventional health insurance plans. For healthy individuals who do not fall sick within the policy's active period, the cost of the plan is small in comparison to ACA health plans.
No enrollment period - Unlike ACA plans, you do not have to wait for a particular time of the year to buy short term health insurance, it is available all year round.
A wider network of doctors - short-term health insurance has a more expansive network than ACA plans, policyholders have a bigger pool of healthcare providers to choose from
International coverage - short-term health insurance provides coverage outside the United States, unlike ACA plans that may be geo-restricted.
Waiting period - The waiting period for short term health insurance is negligible, you can buy the plan and its coverage begins the next day.
No penalty - You can cancel the policy at any time at no extra cost.
Cost-effective - It runs between a month and 12 months, you can customize the plan and pay for the period you need it and avoid over-insurance.
Why is Short-Term Health Insurance Bad?
Short-term health insurance is bad for the following reasons:
Not ObamaCare compliant - It is not ACA compliant and does not offer some of the essential health benefits that are mandatory for ACA plans. Also, unlike ACA health plans, short term health insurance does not cover pre-existing conditions.
Limited coverage - It has limited coverage and may not meet all your healthcare needs. Temporary health insurance plans do not offer minimum essential coverage, as ACA compliant plans do. Neither does it normally cover pre existing conditions (except for some special cases, where after a year or more of coverage, some of pre-existing conditions can be covered - based on the plan details). For the treatment of illnesses that do not have coverage under the plan, you may have to combine it with supplemental health plans.
No tax subsidy - Individuals on short-term health insurance are not eligible for premium tax credits which are available to ACA plan policyholders.
High deductibles - It comes with a low premium but has high deductibles.
Guarantee renewable - short term health insurance is time-dependent and not guaranteed renewable, it runs for a maximum of 12 months and can be renewed twice (making 36 months in total). After the first, second, or third year the plan elapses.
Guaranteed issue - Short-term health insurance does not conform to the Affordable Care Act and does not cover pre-existing conditions. Health history and health status are eligibility factors, and treatment of medical conditions is not guaranteed. Note: Short term insurance providers may drop a policyholder with a serious medical condition within the policy active period.
Is Short-Term Health Insurance Worth it?
The answer to this depends on the individual, it may be a yes if you need the plan. For instance, as an individual who just lost employer-provided health insurance, or an unemployed person living on savings while looking for a job, short term health insurance may be worth it as temporary protection. Unlike the ACA plan, its flexibility comes with a low premium, and almost instant coverage makes it desirable to many.
However, the plan also comes with some undesirable qualities, though the premium is low, it has a high deductible making it unsuitable for individuals who require many treatments. Its coverage limit may also be a big minus for individuals who may need the treatments that are not covered by the plan.
Despite its shortcomings, short-term health insurance is a convenient way to get healthcare coverage for individuals going through transition and need affordable short-term coverage. Depending on what healthcare needs you may want to meet, short term health insurance may be a solution, contact a knowledgeable health insurance agent licensed in Florida for advice.
What Happens if you Do Not Have Short-Term Health Care Coverage?
If you do not have short-term health insurance, if you lose eligibility, or if the coverage expires and does not get renewed, you will not be covered under the plan. And if you do not have any other health insurance plan, you will pay for 100% out of pocket costs for all your healthcare treatments. You may not have short term health insurance because of its limited coverage or if you got denied. In this case, an ACA health plan (which costs a bit more) may be a better solution.
Supplemental health insurance plans can be a substitute for some coverage, though, unlike short-term health insurance, the coverage is more limited to specific illnesses and services.
If you have an ACA plan you do not need short term health insurance. Whatever reason you have for not having short-term health insurance, discuss it with knowledgeable health insurance professionals, who can assess your needs and recommend multiple options of coverage.
Why is Short-Term Health Insurance Important?
Short-term health insurance is important because it gives Florida residents a fast way of getting flexible and customizable health insurance on a budget. Though it can be purchased just for a short period of time and it has other significant limitations, temporary insurance provides a quick fix for individuals who need urgent healthcare coverage. When you combine short term health insurance with a supplemental health insurance plan, it can help solve your immediate healthcare needs, and in some ways exceed what ACA insurance offers.
What Happens When your Short-Term Health Insurance Lapses?
If your short-term health insurance lapses, you will not have coverage under the policy. Short-term health insurance can lapse due to the policyholder not paying the premium, policy expiration, or the insurance company canceling the plan due to pre-existing conditions. Like other types of insurance, if you do not pay the premium for the plan within the 30-day grace period, you lose coverage.
Florida short term health insurance runs for a maximum of 12 months, which can be extended twice, for 12 months at a time - for a total of up to 36 months. If your policy expires and you do not renew, or it has run consecutively for 36 months, it will elapse. An insurance company may also cancel a short-term health insurance plan if it discovers that the insured has a pre-existing condition that was not obvious at the time of purchasing the plan.
If you have a lapse in coverage with your short term health insurance, depending on the condition that caused the lapse, you can either renew the plan or buy a new one. It is important to note that it may be difficult to get new short-term health insurance if you lose your plan because of pre-existing conditions during the policy's active period. If you cannot qualify for short-term coverage due to a pre-existing condition, your only remaining option of coverage is through the Affordable Care Act-compliant insurance: purchased individually on the Marketplace or through an employer (all group plans are ACA plans).
In the event of a lapse in your short term health insurance, contact your state-licensed insurance agent to weigh your options or seek an alternative solution.
