Advantages and Disadvantages of Short Term Health Insurance Plans
The advantages and disadvantages of the short-term health insurance plans are often presented as data points by insurance companies. They present these advantages and disadvantages as if they were great points in favor of their plans, when in reality they’re simply data points to provide background information to consumers. And it’s the consumer who may not understand how it all works.
Let’s look at some of the reasons why people choose short term health insurance. Consider the advantages, disadvantages and advantages of short term health insurance as listed above.
The top advantages of short term health insurance plans include:
- Reimbursing for medical services for individuals. There is a certain limit on the amount of money that can be reimbursed to an individual in a plan that may only be paid by a group policy or group of individuals.
- Preventive care without a premium. This is another benefit of short term health insurance that people often neglect because they are too busy with their jobs. They don’t see how important it is to get your regular checkups and routine care for preventative health problems.
- Good health insurance discounts. Those who have a group policy of short term health insurance receive 50% of the total premium rate that a person would pay for health insurance coverage.
- Prescription drugs covered. A good portion of prescription drugs that are covered by short term health insurance plans are usually covered as a result of the Health Insurance Portability and Accountability Act. This act allows an individual to retain their drug coverage even after being terminated from a group plan.
- Medicare supplement benefits. Short term health insurance plans often cover prescription medications but Medicare does not usually cover them. Still, it’s better to be safe than sorry and to pay for those medications out of pocket.
Disadvantages and Downsides
Some of the disadvantages of short term health insurance plans include:
- Free care for family members. Those individuals who have policies with short term health insurance plans usually have limited or no coverage for long-term or chronic illness and not long-term conditions such as cancer, heart disease and diabetes.
- No coverage for pre-existing conditions. People with pre-existing conditions also don’t get the same discounts as other consumers do.
If you’re looking for an affordable policy, look into short term health insurance plans. It may be the best policy for you, depending on your personal circumstances.