What is the Difference Between Short and Long Term Health Insurance?

Obamacare is, by nature, a long-term plan. Ironically, in spite of the Affordable Care Act’s intended purpose, it’s simply unaffordable and inaccessible for many people. It just might be alternative time. At BuyHealthInsurance.com we’re all about making sure you understand all your options, and helping you pick one that fits your life.

 

While you can enroll in Obamacare from November 1st to January 31st, if next-day coverage is what you need, term health insurance may be where it’s at. Depending on the state, these plans have a limited term of 6 or 11 months. At the end of the term, you need to reapply.

 

Short term health insurance might be right for you in the following cases:

 

• You’re on a budget. Premiums are generally half the cost of an Obamacare plan.
• You’ve poured through your state exchange or www.healthcare.gov, and you simply haven’t found a good solution for your needs.
• For periods of less than a year. Long term plans offer annually renewable coverage so that you can keep the same plan for longer, but this tends to cost more.
• All you need are doctor visits and general coverage.
• You want to bridge the gap between now and your Obamacare enrollment.

 

Long term health insurance might be right for you in the following cases:

 

• You have pre-existing conditions.
• You plan on getting pregnant.
• You’d simply like a more extensive plan.

 

Going short term

 

Pros:

 

• With the money you save from purchasing a short-term medical plan, you can purchase supplemental benefits, like accident or critical illness insurance plans that pay cash benefits.
• Short-term plans are widely accepted among health care providers, unlike limited or narrow networks.

 

Cons:

 

• On their own, short-term plans don’t satisfy Minimum Essential Coverage (MEC) requirements (i.e., preventive care, maternity, and mental health), which can lead to penalties. But, even with a penalty, this option may still be more affordable.
• They don’t cover pre-existing conditions.
• Unlike ACA plans, short term plans are not guaranteed issue.

BuyHealthInsurance.com is here to help you make sense of your YES and NO columns. It may seem complex, and it can be, but we exist to help you combine just the right balance of forces to satisfy your unique health needs—your unique life. Drop us a line today at 1-800-793-3803 and make a move toward healthcare that suits you, in both the short and long term.