Many individuals, especially recent college graduates or individuals who are going in and out of different jobs, will often opt to enroll into short term health insurance plans. These plans, often referred to as “gap insurance” policies, are great for people who are still in the process of looking for an affordable or well-suited insurance plan, or even for those individuals who may have forgotten to sign up for for coverage during the specified enrollment period. But though there are a few benefits to getting these short term insurance policies, there are also a few disadvantages that potential policy buyers should be conscious of. Therefore the following are a few of these advantages and disadvantages so people, especially those residing in Texas, can make a better, more informed decision.
Short Term Insurance has Lower Premiums
This makes perfect sense as short term insurance plans normally will only cover an individual between one month to a full year and nothing more. These plans on average will cost someone around $100 each month, making this an extremely appealing option for recent college graduates who may still be looking for some form of financial stability while also wanting coverage just to avoid any headaches in case something wrong were to happen.
The disadvantage however is that individuals under these coverage policies will often find themselves paying greater amounts of money out of pocket, even though the plan offers fewer benefits than what a full coverage policy would offer. Also, because short term insurance doesn’t meet the minimum requirements set under the Affordable Care Act, there may be pricey penalties involved as well, so getting a full coverage plan is a must to avoid such hefty fees.
Greater Likelihood That You Will Be Denied
Full Insurance providers are unable to deny individuals from any form of coverage, regardless of their medical history. On the other hand, however, individuals who are looking for a shorter term insurance could very well be denied based on how much of a risk they may be for the insurance provider. So though a short term insurance may look appealing, especially during times when you have no other way of acquiring coverage, you may very well end up being denied coverage due to past medical histories. Therefore, younger individuals are more likely to be accepted under these coverage policies, and is extremely rare for anyone above the age of 65 to be accepted.
Generally Won’t Cover Everything
Unlike standard coverage policies, short term plans simply won’t cover everything. Things like maternity care and essential treatments for mental illnesses are often not required to be covered under these plans, and therefore many short term coverage providers simply won’t provide that coverage at all.
However, there are a good number of Texas short term health insurance providers that will cover mental health costs, so it’s just a matter of doing a bit of research into each insurance provider before settling with one.
Texas Insurance Information
Generally, short term health insurance across the United States is pretty much the same deal. The coverage period normally extends between one to twelve months and are extremely appropriate for newly graduated students or people who are jumping in and out of different jobs. It’s also just a great place to start for someone who still needs time in finding a suitable insurance for their own personal needs.
However, purchasing a Texas short term health insurance plan can make an individual ineligible for more inclusive plans such as the HIPAA, which is generally more expensive but normally acquired by individuals with serious, pre-existing medical conditions. HIPAA is ultimately intended for people who may have a difficult time getting coverage because of past medical conditions; short term insurance policies, on the other hand, are intended for healthier individuals and generally anyone above the age of 65 usually will not be able to enroll in a short term plan anyways.
So long story short, if you have pre-existing medical conditions, its better to skip trying to get a short term plan and opting for something more inclusive such as HIPAA.
Short term health insurance is definitely not for everyone, and is certainly not a permanent solution for those who require health insurance. However, it is great for individuals who are young and healthy, and are currently in the process of enrolling for health insurance or simply want a cheaper alternative until they are more financially stable to acquire full coverage health insurance.
Due to these plans not having to meet certain requirements or minimums, there are however many areas in which short term health insurance won’t be able to assist an individual, and those who need coverage for things such as mental illness or treatments for alcohol or drug abuse should opt for a longer, fuller coverage option. In the end, short term health insurance is not a permanent solution, and individual who are currently under such a plan should be actively searching for longer, greater coverage policies.