One of the benefits of short-term health insurance is that the application process is somewhat more straightforward. These policies are really designed to cover unforeseen accidents and other emergency situations and are not recommended for comprehensive health protection. They will therefore generally not cover such advanced features as preventive treatments, physical and diagnostic tests, immunizations, dental and vision expenses which you should try to avoid for the period under which you are covered by the short term plan.
What to know about Arizona short term health insurance
A major appeal of short term health coverage is how affordable it is. The benefits covered by short terms plans are typically related to emergency care, meaning that these plans may work well for those who don’t require regular medical care, such as frequent visits to the doctor or expensive prescriptions. Although these plans do not have as many benefits as major medical health insurance, they provide some coverage that’s still affordable for many people.
Purchasing a short term health insurance plan in Arizona may make you ineligible for any guaranteed issue individual health plans commonly referred to as HIPAA Plans, or a COBRA plan if you recently lost coverage from a group health plan.
Also keep in mind that short-term health plans typically do not cover pre-existing medical conditions or many benefits that more comprehensive plans do, such as the minimum essential benefits that are required for qualified health plans under the Affordable Care Act. Furthermore, short-term plans generally do not guarantee renewal, so any conditions that develop while you are on a short-term plan may prevent you from renewing or may be excluded from your policy once you renew.
Due to those limitations, short term health insurance might not be for everyone. If you are seeking to save on health insurance costs in Arizona and only need minimal coverage, short term can be a good option, but make sure to take the risks and your own health care needs into account when it comes to choosing your health insurance plan.
If you are between jobs or are awaiting another health insurance policy to come into effect you may find that you have a gap in your health insurance coverage. This period is a high risk as you are effectively uninsured when it comes to health insurance. So what are you to do in this interim period? Well one of the best options in such situations is to consider taking out a short-term health insurance policy. This will cover you for a limited or fixed term.
The main concern, and something you should be aware of if you are considering a short term plan is that they will make you ineligible for guaranteed issue health plans. These plans are most commonly referred to as HIPAA plans. They can be very expensive and are used in cases where the insured has existing medical conditions, which would otherwise make it very difficult for you to obtain health insurance. If you think you will need eligibility for a HIPAA plan, you should not purchase short-term health insurance. The Health Insurance Portability and Accountability Act or HIPAA, and state health insurance rights are important protections and you should seek advice from a benefits advisor in these regards.
Usually, short-term health insurance policies last for periods of less than six months. There are policies that will cover you for up to twelve months also however. If you need coverage for periods longer than this, you should probably be considering standard individual or family health insurance plans.
Short-term health insurance plans will not cover existing medical conditions. While the exact definition depends on your circumstances and on state laws, what this means is that if you have been diagnosed in the last three to five years or have been receiving treatment for a condition, it will be a pre-existing condition and you will not get coverage for it under your short term plan. Therefore, if this applies to you, it is recommended that you extend your current comprehensive policy rather than switch to a short-term plan.