Unfortunately, there are several reasons people do not currently have health insurance coverage. Maybe they are having issues affording a traditional health insurance plan. Perhaps they are waiting for their coverage to become active. Or, maybe someone is moving out of state but wants health coverage in the interim. Whatever the case, many people may turn to a short-term medical plan as a solution.
This plan may be just the perfect temporary fix, but you must consider additional critical factors. Continue reading to learn three reasons you may hold off on choosing this type of health coverage.
You may not get the coverage you most need.
Short-term medical plans do not have to adhere to federal regulations. Therefore, they are not obligated to cover preexisting conditions. As a result, consumers may discover that they are paying for insurance that does not cover their health needs. A short-term policy exists more to protect someone against something catastrophic. If the medical catastrophe is related to a health issue you already have, then the policy may not cover your medical expenses.
Your coverage may end mid-treatment.
Short-term medical plans can last for as little as three months. The duration is why these plans appeal to recent grads, people between jobs, and consumers caught between enrollment periods. However, though short-term policies can fill in coverage gaps for when you are in a bind, they can also leave people hanging.
For instance, if diagnosed with an illness, the necessary treatment may last longer than the insurance policy. Again, short-term policies do not fall under ACA regulations, so insurers do not have to renew coverage and likely will not.
You may not qualify for continued coverage.
Regarding the replacement plan, Republicans have proposed requiring continuous coverage as a means for someone to maintain coverage for preexisting conditions. “With the new administration and the many proposed health law changes, it’s not clear yet what would qualify as continuous coverage and what won’t,” said Sabrina Corlette, research professor at the Georgetown University Health Policy Institute.
With possible changes on the horizon, confusion may ensue within the health insurance industry. Unsuspecting consumers with health issues may opt for a short-term policy to save money but later find out it does not qualify as continuous coverage. This scenario is why it is imperative to find an agent who can guide you through any possible changes that may be happening soon. Agents at Empower Brokerage are here to advise and assist consumers in finding the right plan for them!
Have Health Insurance Questions?
We hope that this information on choosing short-term medical plans is helpful for you.
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Empower Brokerage wants to help you find the insurance coverage you need and help you save money getting it. Stay on top of your health and give us a call at (844) 410-1320.
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This article was revised on 2/15/2024.