Short term health insurance plans continue to grow in popularity, especially among millennials. But if you haven’t heard much about short term insurance, you’re in good company. You may believe that you have limited options when it comes to your coverage, but probably have more choices than you think.
For many of us, short term health insurance policies are a great option to get the coverage we need during a transitional time period. Here are just a few of the advantages that short term health insurance policies can provide.
They’re less expensive
The truth is that short term policies can cost half the amount of traditional health insurance plans. According to the eHealth price index, the average premium for short term health coverage in 2014 was around $110. But the average premium for traditional medical plans during 2015’s open enrollment period was around $286. For many people, this can make a huge difference — especially if you don’t find that you take advantage of some of the types of coverage that traditional insurance provides.
They’re better for gaps
If you’re between jobs, missed the open enrollment period, going through a divorce, or are waiting for Medicare to kick in, a short term health insurance policy might be exactly what you need. A total of 10,000 Americans enroll in Medicare for the first time every day, but many retirees find themselves without coverage because they haven’t yet hit that magical 65 age marker. If you’re waiting for the insurance from your new job to take effect or need to wait a few months until you can enroll in a long term policy, your health care expenses can be reduced with a short term policy.
You can apply any time
Unlike Obamacare or job-based insurance plans, you can enroll in a short term plan at any time of the year. What’s more, your policy will take effect immediately, so you won’t be stuck in a waiting game. Obamacare has a host of regulations about when you can enroll. If you missed the enrollment period, you aren’t allowed to enroll unless you have a major life event like a marriage or a move. Fortunately, you can apply for immediate short term coverage to take effect until the next enrollment period rolls around.
If you want to know more about your options for health insurance policies, please contact us today. We’ll help you decide on the plan that’s best for you and your family.
