Buy-Smart... 8 Tips
Here are 9 short-term health insurance shopping tips. ery consumer-oriented.
Page Contents...
1. For Faster, Safer Online Insurance Quotes - Stay Anonymous!
2. Retain Your Option to Extend Your Short-Term Coverage... if Needed.
3. Two Reasons to Elect a Higher Deductible.
4. Attention Employers - Don't Make This Mistake!
5. A COBRA Alternative, but Not Always!
6. Avoid using Short-Term in place of Major Medical.
7. Understand the Policy Exclusions.
8. Continuous Coverage and HIPAA.
9. Health Questionnaire... be Accurate and Complete.
10. Have You Been Declined For Health Insurance?
1. For Faster, Safer Online Insurance Quotes - Stay Anonymous!
Today, many insurance quote-websites ask for or your full contact information - your name, your home address, e-mail, and telephone number. But in reality, only your home Zip Code is required, along with other preliminary information, for an insurance company to provide you with a fast and reasonably accurate health insurance quote.
Be careful. Many Websites are only in the business of selling your name and personal information to outside insurance agents. Typically, your person information is sold many times.
We recommend that you stay in control of the insurance shopping process. Only provide your full contact information when you are ready to buy.
It's OK to give certain information (e.g. Zip Code, age, sex), if you do so anonymously. There are good websites that do not require your personal contact information for an online insurance quote. Only such quote-websites are featured here, where your full contact information is NOT required.
2. Retain Your Option to Extend Your Short-Term Coverage... if Needed.
Short-Term Health Insurance covers you for a limited period of time. In most cases, when your insurance policy period ends, your coverage ends as well, including coverage for any possible ongoing medical claim.
Unless you are 100% certain of having "full take-over" health insurance on a future date, we recommend that you own Short-Term Health Insurance on a month to month basis, rather than for a fixed-single-payment-term.
You may do this by purchasing the insurance for 6 or 12 months, and paying monthly. If you wish to stop the insurance before the end of the 6 or 12 month term, simply stop your monthly payments.
For example, suppose you purchased Short-Term Health Insurance for exactly 60 days by single payment. On the 59th day of your coverage, suppose you fall and suffer injuries that will require ongoing medical treatment for several months. Your Short-Term insurance might cover your initial treatment on the 59th day. At the end of the 60th day however, your insurance coverage ends and all future medical care and treatment after that date would not be covered.
Consider that health insurance is primarily for the BIG expenses, which usually amass over a period of weeks or months. Fixed-term (single-payment) health insurance costs less, but your risk is great.
For payment flexibility: The "Secure STM" Short-Term Health Insurance Plan offers among the most flexible month-to-month payment options in the industry.
3. Two Reasons to Elect a Higher Deductible.
#1. Higher deductible = lower premium.
#2. The claims process is another reason to consider electing a higher deductible. Simply put, a small claim may not be worth your time or effort. Here's why.
Temporary health insurance is "underwritten at time of claim." This means that in the event of a medical claim, the insurance company will likely require a completed health history questionnaire, as well as copies of prior medical records from your doctors. (They are checking for "pre-existing" medical conditions.)
Health insurance is primarily for the big expenses, to help save life or limb, and to keep you from going broke. Most consumer advocates recommend saving money with a higher deductible and "self-insuring" any small claims. (See Get the Most - #4, how to save at doctors when paying cash or cc.)
4. Attention Employers - Don't Make This Mistake!
Never purchase or in any manner pay the premium for Short-Term Health Insurance with company funds on behalf of an employee.
If an employer pays for Short-Term Health Insurance on behalf of an employee, then that insurance could be considered as "group insurance" under both Federal and State law. However, Short-Term Health Insurance contains limitations and exclusions that are not common in true group insurance. In the event of a major claim by the employee, the employer could potentially be held liable for any shortfall between short-term insurance reimbursement (if any) and what would normally have been paid under an employer's group insurance.
Today, most insurance companies with not accept payment of premium by company check or company credit card. This is for the protection of the company. However, we have seen cases where a company check or credit card has been accepted by mistake. So be aware of why only individuals, not companies, should pay for this type of insurance.
Why not simply refer new hires and others to our website - safe, unbiased, and useful tips
5. A COBRA Alternative... but Not Always!
Be careful when considering Short-Term Health Insurance as a COBRA alternative.
When people leave their jobs, they are often shocked at the high cost of maintaining their group health insurance under COBRA. Due to this fact, some short-term insurance plans promote themselves as an "affordable alternative to COBRA." But while COBRA may continue to cover "pre-existing" medical conditions, short-term health insurance will not.
If you are considering using short-term health insurance in place of COBRA, be sure that you understand all limitations and exclusions of this insurance - especially the exclusion for "pre-existing conditions." The definition of a "pre-existing condition" varies by state, but in general, temporary plans exclude conditions that have been diagnosed or treated (including medication) within the past three to five years.
6. Avoid Using Short-Term in place of Major Medical.
Short-Term Health Insurance costs much less than "annual-renewable" major medical insurance. In some cases, the cost is about 1/2 or less. Because of the lower cost, many people are tempted to save money by keeping Short-Term insurance for a longer period of time than necessary.
This type of Insurance is for sudden and unexpected injury or illness. It is not intended as long-term alternative to major medical insurance. It is not renewable and it lacks many of the benefits found in major medical plans.
7. Understand The Policy Exclusions.
Policy "exclusions" are medical or physical conditions and situations that an insurance policy specifically will not cover. Many exclusions are common for Short and Intermediate-Term insurance. "Immunizations" and "preventive care" are typically not covered.
"Pre-existing conditions" are not covered. This includes any condition that was treated or produced symptoms within "x" number of years (see policy for details) years prior to your effective date. This "look-back period" for pre-existing conditions varies from state to state.
Sometimes, knowing what's not covered can be just as important as knowing what is.
8. Continuous Coverage and HIPAA.
Temporary / short-term health insurance can be used to maintain "continuous qualifying coverage" under Federal and state HIPAA laws. When going on an employer's group health insurance plan, having prior "continuous qualifying coverage" without a gap of over 62 days could be very beneficial.