Permanent vs Short-Term Health Insurance
Permanent Plans for Continuous Security
Most people select long-term health insurance, which provides continuous coverage and is renewable for multiple years (typically to age 65, when people become eligible for Medicare). Long-term or permanent plans typically insure both major medical expenses (e.g., hospitalization and surgeries) and routine medical expenses (e.g., office visits and prescriptions), subject to deductibles, co-payments and co-insurance.
Short-Term Plans for Temporary Situations
Inexpensive short-term health insurance is temporary (usually from 1 to 6 or 12 months) and should NOT be used as a substitute for long-term health insurance.
- Between jobs
- Waiting for coverage from another health plan to start
- Laid off
- On strike
- A recent college graduate
- A seasonal employee
Short-Term Health Insurance Limitations
- Short-term medical plans are intended as interim or "gap" coverage. They are for people who know, with some certainty, that they will be replacing the short-term coverage with long-term health insurance. such as an employer-sponsored plan,
- Short-term plans are designed to provide protection from unforeseen illness or injury; they usually do not cover routine exams, preventive care, or immunizations.
- Short-term plans are exempt from HIPAA legislation. So short-term health insurance companies do not guarantee renewal or waive the pre-existing condition limitation for federally eligible individuals.
Play it Safe
If you are unsure about your long-term health insurance situation, you should purchase permanent health insurance now. Do not risk an adverse change in your health condition that could leave you uninsurable.
