When would I use a Short Term Medical Plan?

Written by  Jean Gray
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The very name – Short Term Medical Plan – tells you a lot about it. It is only for the short term and usually written for a period of time covering one month to a year (some may go as far as 18 months).  While it is not renewable, you can apply for a new policy if more time is needed.

It is great for people who are between jobs, waiting for their workplace insurance to start, seasonal workers and people who are waiting for Medigap insurance to kick in. Another group who are a good candidate are graduating college students who are no longer covered under their parent’s plan.

It is full major medical coverage and customizable like a regular policy to fit your needs & budget.  Short Term insurance usually has lower premiums and deductibles than a regular major medical policy, too.  Typically you pick the deductible, copay feature & number of Dr visits, coinsurance and length of the policy. Be aware, though, that the look back exclusions on pre-existing conditions is usually 5 years.

Short Term medical plans are a stop-gap. If you have a 3 month waiting period before your new employer‘s health insurance kicks in, you buy a 3 month policy. If you are a seasonal worker, and have no insurance during your off season, you buy a policy that covers that gap. For seniors who have retired and have to wait six months for their Medigap insurance to become available, this can be a good solution.

It is for the short term, and while you could get a subsequent (second) policy if necessary, it is a good thing that will not go on forever. Feel free to contact me if you have any questions about whether this is a good option for you.

Last modified on Sunday, 29 April 2012 22:45

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