Bridging a Health Insurance Gap


If you are currently without health insurance, but anticipate the availability of new coverage in the future, there is a way to get short-term coverage for this temporary need. Several notable insurance companies offer “Short-Term” health plans, to protect you from the high cost of hospitalization and more.

Here are some situations in which a short-term health plan could be useful. Perhaps you have lost health insurance coverage due to a job change, or some life event change. Maybe you are a recent graduate who has found a job, but must complete a probationary period before being eligible for the employer’s insurance plan. Many part-time or seasonal employees are not eligible to participate in a group health plan.

Once a person reaches age 26, they can no longer continue coverage through a parent’s plan. Some retirees may need health insurance protection before they become eligible for Medicare. For others, the cost of regular ACA-compliant health plans may be considered too expensive, compared to the lower rates for short-term insurance.

Most short-term health plans will have a limit on their maximum benefit amount. For some it may be $250,000 or up to $1,500,000 in maximum lifetime coverage. (Note that as of Jan.1, 2014, a requirement for all ACA-compliant health plans is to have NO LIFETIME LIMITS.) Some companies will offer coverage on their short-term plans for up to 11 consecutive months.

Normally these plans require an applicant to answer a few health questions about current or previous health conditions. Serious pre-existing conditions like cancer, heart problems, stroke/brain problems, diabetes, HIV/AIDS, etc. will prevent the issuance of these plans.

Further, less serious pre-existing health conditions will not be covered, although they do not prevent an applicant from getting insurance. Certain plans provide doctor visit copays, but most do not. Most benefits are subject to the insured meeting their deductible first.

The time one is covered on a short-term plan will not count toward the required 9 months minimum coverage to avoid a penalty, since they are not ACA-compliant. A licensed health insurance agent can provide you with further details and discuss your options and rates.

AustinHealthPlans.com can answer any questions you have and provide you with fast, free quotes.  Contact us at: tom@austinhealthplans.com or call: (512) 535-3556.

About tcdiehl

I have been an independent insurance agent licensed in Texas since 2003. My focus is providing affordable insurance coverage through multiple reputable insurance providers for individuals, families, and small groups. I can also help with Medicare insurance needs. Allow me to connect you with the appropriate health, life, disability, long term care, and/or dental plan(s) based on your health, personal, and financial needs. Call me at (512) 535-3556, E-mail: tom@austinhealthplans.com.
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