What is Short-Term Medical Insurance


At First Family Insurance, we get a lot of questions in regards to Short-Term Medical Insurance. Here's a brief breakdown to help you better understand what Short-Term Medical Insurance is and how you may qualify.


What is Short-Term Medical?


What exactly is Short-Term Medical? It is a type of medical insurance that could provide you with medical coverage temporarily in certain situations, such as:

  • You're in between jobs/medical insurance
  • Not eligible to apply for ACA (Affordable Care Act, Obamacare) 
  • Waiting for the enrollment period to begin at your new job
  • ACA benefits have not kicked in yet
  • You're turning 26, which means your parents' insurance will no longer be available to you


This temporary option is great in situations where you need to fill in the gap until you're able to find a more long term solution.


What does short-term medical cover and costs?


Most companies that offer short term medical insurance have varieties in coverages but typically will have benefits for preventive care, doctor visits, urgent care, emergency care, and some coverages for prescription medications. 


Short term medical insurance has similar upfront costs as traditional insurance.

  • Premium: This is the monthly payment. The premium will range depending on the coverages you choose to have as part of your plan.
  • Deductible: This is your out of pocket expense before the plan shares the cost.
  • Coinsurance: This is the percentage of cost you share with your plan.
  • Copay: This is the fee required to pay when you visit your doctor.
  • Out-of-pocket costs: This would be any additional costs that are not covered by your plan. Some medical care not covered or limited by short term medical are maternity care, mental health care, dental, and vision.


Benefits of a Short-Term Medical Plan


According to United Healthcare, short term health insurance is just what you need when there is a change in your life becaof how fast and flexible coverage can be. Here are some benefits:

  • Coverage starts as soon as the day after your application.
  • You can terminate coverage when you obtain a more permanent option.
  • Length of coverage can vary, depending on your state, generally one month to a year.


Who would benefit from short term medical


In a recent article published by The Washington Post, more than a few million Americans have applied for unemployment benefits in the last week of March. Many of these Americans have lost the insurance provided by their work and are looking at COBRA for assistance. COBRA is a continuation of coverage offered to employees who were covered under a group health care plan. COBRA can typically be more costly than short term medical insurance. 


If you fall under any of these circumstances, First Family Insurance can assist in customizing the perfect plan for your situation.


You can speak to one of our licensed professionals by calling 1-800-327-5579