Where can you find a better video than Mrs Brown’s Boys Bloopers and some information about Health insurance…
How much does a short-term health plan cost?
You can find a short-term health plan for less than $100 a month. Compare that with the average of more than $400 for unsubsidized ACA-compliant health plans.
However, Imholz said premiums are just one piece of a financial puzzle. You must also look at a plan’s deductibles, copays, coinsurance and dollar limits and exclusions of services that aren’t covered in short-term plans.
You may find that a low-cost, short-term plan may actually cost you more than an individual health insurance plan in the long run.
“There are all sorts of pitfalls in these skinny plans that may not be evident at first blush and aggressive marketing emphasizing their lower premiums may make them sound tempting. But short-term plans cost less in premiums because they cover less. If you fall into one of the many gaps these plans have, it will end up costing you a lot more in the longer run,” Imholz said.
Who should get a short-term plan?
Healthy people might benefit from a short-term health plan’s low premiums as long as you don’t need health services.
These plans can provide you with some coverage but can lead to substantial out-of-pocket costs. A short-term plan is likely not a good idea if you plan to start a family.
“Short-term plans are not a panacea. They’re not a good fit for everyone, but they should be included in any serious analysis of healthcare financial planning,” McCostlin said.
Some major health insurers, such as UnitedHealthcare, offer short-term plans. Don’t confuse that coverage with regular health insurance. Just because a big-name insurer offers a short-term plan doesn’t mean that plan will provide you with full health insurance coverage. It’s not always easy to distinguish between plans, so reading the fine print is critical.
“One thing consumers can do is to ask the agent or company for a Summary of Benefits and Coverage, which is a standardized form required for ACA plans to help people compare plans. If there is not one available, that’s an indicator that it’s not an ACA-protected plan,” Imholz said.
People with any illness and pre-existing conditions like asthma or diabetes should avoid short-term plans. Even if a short-term plan covers you, your pre-existing condition will likely lead to significant premiums. The plan also probably won’t provide enough coverage to make it worth your while.
However, if you’re healthy and don’t plan on using healthcare services often, a short-term plan can be a wise choice.
Of course, you can’t predict your health for the next year. Imholz gave the example of one woman who bought a short-term plan. She was healthy and thought it was a good fit. Then, she was diagnosed with diverticulitis. The plan covered that ailment, but not the infection that arose from the condition. The plan declined to cover the treatment and deemed it a pre-existing condition. That decision left her with thousands of dollars of medical bills.
“Accidents and illness often come unexpectedly, so while you may be healthy today, life can change in an instant. If you can swing a marketplace policy, it’s a much safer, better deal,” Imholz said.
Short-term plans have their drawbacks, but they’re an option if you need to bridge a gap between employer plans when you change jobs. A short-term plan is a lower-cost alternative to COBRA insurance or an individual plan. It’s also better than not having any coverage at all.
“There are many Americans who are choosing between short-term plans and no coverage at all. For these consumers, short-term plans can be a good fit to protect against emergencies and unexpected accidents,” McCostlin said.