Short-Term Plan: Eight Questions to Ensure You’re Making an Informed Decision

Short-term health insurance plans can be a good option for those in need of temporary coverage, but they come with unique considerations. Before choosing a short-term plan, it’s important to ask the right questions to ensure you’re making an informed decision. Here are eight essential questions to guide you.

1. What Does the Plan Cover?

Understanding what the short-term plan covers is crucial:

• Examine the benefits: Short-term plans often provide limited coverage compared to traditional health insurance. Check for coverage details on doctor visits, hospital stays, prescription drugs, and emergency care.
• Excluded services: Be aware of what the plan does not cover, such as maternity care, mental health services, or preventive care.

Description: A person reviewing the coverage details of a short-term health insurance plan, focusing on what is included and excluded.

2. What Are the Costs Involved?

Short-term plans often have lower premiums, but there may be hidden costs:

• Premiums: Understand the monthly premium and whether it fits your budget.
• Out-of-pocket costs: Check the deductible, copayments, and coinsurance rates. High deductibles can mean significant out-of-pocket expenses before coverage kicks in.

Description: A breakdown of potential costs associated with short-term health insurance, including premiums and out-of-pocket expenses.

3. How Long Does Coverage Last?

Short-term plans are designed for temporary coverage, so know the duration:

• Coverage period: Determine how long the coverage will last. Most short-term plans offer coverage for up to 12 months, but this can vary by state and insurer.
• Renewability: Check if the plan is renewable and under what conditions. Some plans may only allow a limited number of renewals.

Description: A calendar showing the duration of a short-term health insurance plan, helping users understand how long their coverage will last.

4. Is There a Waiting Period?

Understand if there’s a waiting period before coverage begins:

• Waiting periods for specific conditions: Some short-term plans may have waiting periods for certain conditions, meaning you won’t be covered for those services immediately.
• Immediate coverage: If you need immediate coverage, ensure the plan starts right away without any waiting periods.

Description: A clock and calendar indicating the waiting period for coverage to begin, emphasizing the importance of knowing when your benefits start.

5. Does the Plan Cover Pre-Existing Conditions?

Pre-existing conditions are often excluded from short-term plans:

• Exclusions: Most short-term plans do not cover pre-existing conditions. This could include any condition you’ve been diagnosed with or treated for before the start of the plan.
• Look for exceptions: Some plans may offer limited coverage for certain pre-existing conditions, but this is rare.

Description: A medical chart showing a pre-existing condition, highlighting the common exclusion of such conditions from short-term health plans.

6. Are You Eligible?

Eligibility criteria for short-term plans can vary:

• Underwriting process: Short-term plans often involve medical underwriting, where your health status is evaluated before approval. This can affect eligibility, especially if you have health issues.
• Age and residency requirements: Check if there are age limits or state residency requirements that might affect your eligibility for the plan.

Description: A person filling out an application for short-term health insurance, focusing on eligibility criteria like age and health status.

7. What Happens When the Plan Ends?

Understand what options you have when your short-term plan ends:

• Transitioning to other coverage: If your short-term plan ends and you still need coverage, you may need to transition to a marketplace plan, employer-sponsored coverage, or another short-term plan.
• Coverage gaps: Be aware of potential gaps in coverage and plan accordingly to avoid being uninsured.

Description: A calendar marking the end of a short-term health insurance plan, with options for transitioning to other coverage highlighted.

8. How Does This Plan Compare to Other Options?

It’s important to compare your short-term plan to other available options:

• Marketplace plans: Compare the coverage and cost of short-term plans with ACA marketplace plans, which offer more comprehensive coverage and protections.
• Employer-sponsored insurance: If available, employer-sponsored plans may offer better benefits at a lower cost.

Description: A side-by-side comparison of different health insurance options, helping users determine which plan best suits their needs.

Conclusion

Choosing a short-term health insurance plan requires careful consideration of your needs, budget, and the specific details of the plan. By asking these eight questions, you can make a more informed decision and select a plan that provides the coverage you need without unexpected surprises.