Will Short-Term Insurance Plans Save You Money?
Free Coupons, Printable Coupons, Grocery Coupons Online

FreeCoupons.com - Still Couponing and Saving Money Year In and Year Out!



Will Short-Term Insurance Plans Save You Money?

Posted on Tuesday, August 21st, 2018 at 7:00 am
Pin It


You may have heard that short-term health insurance plans can save you money. Before you buy one, it is a good idea to look at the big picture. These types of plans are not going to be ideal for all consumers.

Short-term health insurance plans are also called short-term limited duration health insurance plans. They were originally designed for people who have had a temporary gap in health insurance coverage.

For example, a short-term plan is for people who are leaving one job and starting another. They lose the health insurance coverage from their old job, and have to wait for the new job’s health insurance benefits to kick in.

Short-term heath plans are are cheaper than the health plans on the Affordable Care Act marketplace. The short-term plans can cost as little as $25 a month. Short-term plans are widely available, and may not require people to wait for open enrollment.

Your premium will be less with a short-term plan. However, since short-term plans do not cover very much, you will end up paying more out-of-pocket than you may have expected.

Things to know about short-term health plans:

* They are allowed to deny you coverage if you have a pre-existing condition.

* They are allowed to refuse to cover people with chronic health conditions.

* They are allowed to cancel your insurance coverage if the insurer learns that you have a condition that you did not tell them about.

* They are allowed to charge sick people more money for their premium than they charge healthy people.

* They don’t cover maternity care.

* They don’t cover have to cover prescription drugs.

* They do not cover mental health care.

* They are allowed to use your medical history to deny coverage for the health care you need.

* They do not cover mental health.

* They will only cover a hospital stay up to a certain dollar amount. After that, you will have to pay out-of-pocket for the rest of the bill.

* They are not required to cover the essential health benefits that Affordable Care Act plans are required to cover.

A short-term health insurance plan may be a good choice if you are leaving one job and must wait to qualify for health insurance coverage at your new job. A short-term plan might be ok for a young and healthy person, who has no pre-existing conditions, no mental health conditions, and who does not use any prescription drugs.

Most people, however, will find that the low premium price on a short-term health plan means that they are going to have to pay out-of-pocket for the majority of their health care needs.

Leave a Reply

Your email address will not be published.


 

Good Tip: Saving money is important – especially if you have a lot of expenses like bills to pay, loans to pay off, and all the other things that drain your bank account. Figuring out a way to save money can feel tedious to some, and like a punishment to others. U.S. News suggests that you try one of these money saving challenges. The “No Eating Out for a Month” Challenge This one is self-explanatory. The goal is to avoid eating out for an entire month. This might be super easy for people who enjoy making meals at home. People who really enjoy dining out, or ordering food to be sent to their home, may struggle with this one. It’s worth a try because spending money on take-out is more expensive than buying groceries. The Pantry Challenge This one is a variation of the “No Eating Out for a Month” challenge. The goal is to use up all of your groceries before you buy more. It forces you to try and remember why you bought a food or beverage that you don’t know what to do with, and gives you the opportunity to find a way to use it. The one exemption to this challenge is the foods that have expired. Don’t eat them! Throw them in the trash. The “No Spend” Challenge Make a goal to avoid spending money during an entire weekend. The only exemption in this challenge is that you are allowed to pay bills. This challenge is interesting because it requires creativity. You must be creative and find workarounds for problems that you would typically solve by spending money. You may have a different outlook on spending after finishing this challenge.