Short term health insurance is exactly as the name implies – it is a type of health coverage you purchase which covers a short predetermined amount of time. A number of reasons exist as to why you need it and rest assured you can find cheap short term health insurance to fit your lifestyle. You will likely be able to choose anywhere from one month to one year, depending on your circumstances and you can expect the policy to cover you on unforeseen injury or illness and you can even choose your own doctor and hospital. However, your cheap health insurance short term coverage usually requires you to meet your deductible and co-insurance first before covering the rest.

Why You Might Need This Type of Plan

One of the most popular reasons for needing cheap short term health insurance is due to a gap in insurance coverage, typically when you switch jobs and you have to wait for the insurance enrollment period in your new job. Sometimes, a new job may have a probationary period before you can sign up for their insurance plans. While COBRA is an option for coverage, it is not budget-friendly so insurance in the short term is best.

Recently graduated college students will find that cheap short term health insurance makes sense, especially if their student insurance expires, leaving them uncovered during the job search. Many employers these days are either cutting down on insurance benefits or dropping them all together. If your employer drops insurance as a benefit, you will need insurance in the short term until you can find another alternative, either a cheap family health insurance plan or something through a membership organization you may belong to.

Typical Coverage

Most cheap short term health insurance plans can be deemed “temporary” and are intended to grant coverage for key medical expenses such as surgery and hospital stays as a result of an injury or illness. General hospital costs are covered such as the room, anesthesia and surgical expenses, special tests and other incidental hospital expenses but you would be subject to meeting your deductibles or coinsurance.

Unlike other policies, a short term plan has an end date, a time when it is terminated, and that is something you decide upon in advance when shopping for cheap short term health insurance. You may stop the policy before it ends but you may not be able to renew it when it expires, but each insurance company has its own policies regarding this. Many times, you can be covered within 24 hours of purchasing the policy, although this does vary. Consider your situation and whether you expect things to change within a reasonable amount of time before choosing a cheap short term health insurance policy.

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Insurance costs are outrageous these days and many people are sacrificing just to get the minimum in health coverage. You can find a cheap health insurance plan that suits your needs but there are several questions you have to ponder before you find the best policy that fits your budget.

Does My Employer Offer It?

First of all, many employers offer some form of health insurance so you should check out your options in this arena. Often, the employer will partially underwrite the cost of a policy with the remainder taken out of your paycheck each month. Decide if this is an affordable option you should pursue as you could garner a cheap health insurance plan via this method.

Which Health Plan Is The Most Affordable?

You have four basic choices in health plans – health maintenance organizations (HMO), fee for service (FFS), preferred provide organizations (PPO) and point of service (POS). For a cheap health insurance plan that is easy on the pocketbook, the HMO option is the best choice but it can be rather inflexible in that you have to choose a primary care physician and you must get referrals and pre-authorizations for specialists. Basically you sacrifice the freedom of choice you can get in a PPO – you can choose a specialist as needed without authorization – for a good rate.

Which Do I Want -Cheaper Premiums Or Cheaper Co-Pays?

Your general health will typically dictate your cheap health insurance plan and it is sometimes a matter of choosing between low co-pay and a low premium. If you are healthy and young, you may not have a high enough salary to cover large premiums so you go for the higher co-pays to keep your monthly rate down. Basically, you are bargaining that you will stay healthy and away from the doctor’s office. However, if you are older or have a health condition, you likely will choose a lower co-pay instead as you would frequent the doctor’s office more often.

Pre-existing conditions and variable maximum lifetime benefits may also affect the price tag when shopping for a cheap health insurance plan. Some companies may not even accept people with pre-existing conditions while others charge more for coverage. As for lifetime benefits, most companies have a one million dollar cap, an industry average standard. However, there are some much lower, as low as $100,000. Of course, one bad car accident or diagnosis of cancer can bust through that lifetime benefits cap, so try not to use this standard as a way to get a cheap insurance plan.

If you are seeking cheap health insurance short term, you may have better luck with your budget. Short term plans are typically used to fill in a gap, sometimes a change in jobs or even transitioning from student to employee. Plans for the short term typically only cover major medical expenses, leaving the regular doctor visits and incidentals like prescriptions up to you. Regardless of your needs, there is a cheap health insurance plan out there for you but you have to thoroughly examine your needs and budgetary restraints first.

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