Short Term Major Medical Insurance
What Is Short Term Major Medical Insurance?
Most medical insurance companies offer plans that cover catastrophic circumstances. It is sometimes referred to as a “hospital only” plan or short term major medical insurance because they have a very high deductible but put a cap on out of pocket expenses.
Short term health plans offer you an affordable rate on major medical health coverages in the event of an unexpected emergency, illness, injury or accident. It usually does not cover doctors visits or preventative care. Simply put, you cover the little stuff, and your plan will cover the big stuff.
Short-term plans are not required to have the same coverage benefits as the Affordable Care Act, and they are not actually considered an insurance plan because of their limited protections. Short-term major medical plans are usually not exempt from the Affordable Care Act penalty, either. Check with your insurer to see if you are exempt.
Who Should Apply for Short-Term Major Medical Plans?
Short-term major medical plans are usually for healthy people who don’t make regular doctor visits but would like the piece of mind in case of emergencies. Then you will not be burdened with huge medical bills in the tens or hundreds of thousands of dollars.
Short-term could also be for those who just need to fill the gap from the end of one health insurance policy to the start of the next. For instance, if you got a new job, but your health insurance provided by your company does not kick in for another two months, then to fill in that two-month gap, short-term major medical insurance could be the plan for you.
Keep in mind short-term health plans are not for everyone. People who have mental health conditions or maternity needs should not apply for short-term medical plans. As well as people with chronic conditions, poor health or complex medical needs are often better served by an Affordable Care Act or large employer-sponsored health plan.
You can also be denied for a major medical short-term health insurance plan if you have pre-existing conditions.
Can I Get Short-Term Major Medical Health Insurance?
Apply any time, and you can receive coverage as early as midnight. Short-term health plans usually have a limit of 364 days. There are no enrollment periods. Check with your state’s policy on short-term major medical health insurance. Some states such as Maryland, New York and California have much stricter limitations on short-term health plans due to the lack of coverage.
California does provide a loophole to the ban on short-term health plans, though, through Aliera, a Health Care Share Ministry. They are exempt from the Obamacare requirements so members do not have to worry about the penalty for not having health insurance.
How Expensive Is Major Medical Health Insurance?
Major medical health insurance is generally a low-cost temporary health plan, but remember that the deductibles on these plans are very high, so you will be paying out of pocket for most medical care until your deductible is met. The average deductible is about $4,000 for an individual and $7,700 for families.