The recent changes in the economy have created a large consumer base without employer health coverage and as anyone knows unexpected illnesses and accidents can happen at any time. Consumers in transitional periods have the greatest need for short term medical insurance. Any unexpected illness, accident, or injury could deplete all of a family's savings—even lead to financial disaster. Short term medical insurance can be a short term solution.



What is Short Term Medical?

Short Term Medical is a form of health insurance that is typically used for covering gaps on permanent health insurance coverage. Short Term Medical Term periods are usually for 1,3 or 6 months and some STM plans cover up to 12 months. Short term medical insurance is a great way to protect you or your family members when you may find yourself in any of the following circumstances.

Between Jobs- If you have been laid off due to recent economic changes or are simply between employers and have a waiting period for employer benefits you can purchase instant coverage short term medical for about ½ the cost of COBRA.

Temporary or Seasonal Employee- Short Term medical may be suitable protection to maintain health insurance coverage for those who have changing employers

Seniors- Seniors who may have retired and no longer have an employer group plan and are waiting for eligibility for Medicare.

Students Recent Graduates- Student who may no longer be eligible for a student plan or parent plan may choose Short Term medical for the gap prior to locating a more permanent employer plan.

Short Term Medical Plans are offered through many of the same insurers that you can purchase permanent individual or group plans from including Assurant, Aetna, and United Healthcare- Golden Rule, Humana and Blue Cross Blue Shield. Consumers can obtain many of the same features and benefits offered with permanent health plans such as co-pays, prescription drugs, choosing doctors, deductible options, hospital benefits, ambulance services, surgeries and transplants. These features and services as well as cost will vary from one insurer to the other and should be reviewed. Most individuals will qualify up to age 65 as long as they pass a few basic health questions If you have a pre-existing condition or are receiving treatment this may be excluded from coverage from your STM plan.

Important Considerations to Determine Which Plan is Optimal

Determining which plan is best for you can seem confusing but most importantly choose a plan that you are comfortable with the co-pays and deductibles for co-insurance. Usually a lower deductible will result in higher premiums (monthly payment) but less out of pocket for the deductible before the coverage kicks in to cover the difference. Examine the plans based on the deductible and be sure the plan covers all the aforementioned services.

An example of a $15,000 medical treatment is as follows:

You choose $1000 deductible

Monthly premium $86.57

$2000 Co-Insurance + $1000 deductible total $3000

Insurer Pays $12,000 80/20 Co-Insurance

If you choose $2,500 deductible

Monthly premium $67.33

$2000 Co-Insurance + $2500 deductible total $4500

Insurer pays $10,500

Consumers can typically purchase Short Term Medical from an authorized licensed agent

Agents provide short term medical at the same cost you can obtain from the carrier; however the benefit to the consumer is honest educated advice and or the ability to shop multiple carriers for the best plan from one source. Currently most agents are embracing technology to offer multiple quotes directly from their website. You can apply directly to the carriers' link and or request the agent assist you and take the application by phone. The long term benefit to using an agent is having a resource who is familiar with the plans and the carriers service should you need direction or assistance.