Short-term medical insurance, also called temporary insurance is primarily designed to provide coverage in between employer provided coverage periods. Typically short-term coverage plans are offered for periods not longer than twelve months.
Situations where short-term coverage may be most appropriate:
- While in-between jobs
- While employed part-time looking for full-time employment
- While waiting for employer benefits to begin
- Temporary or seasonal employment
- Recent graduates not covered under a parent’s plan
- Non-U.S. citizens temporarily residing within the United States.
Short-term medical policies are available as HMO, PPO, POS, and Fee-for-Service plans. Short-term policies generally provide protection against serious illness, but do not provide significant benefits for routine and preventative care, though this isn’t always the case. Short-term policies can often be customized to fit the needs of a consumer in a particular situation, and can be a very affordable way to get temporary coverage to protect from the potential for high medical costs for sudden illness or accident.
It is important to know that short term medical policies are not covered by the Health Insurance Portability and Accountability Act of 1996 (HIPAA), and do not provide renewability protection for continuous health coverage of pre-existing conditions.