Temporary Health Insurance Features and Limitations

2007-03-08 10:33:40

( Insurance )



Health Care Alternatives for the Unemployed

Losing your job means losing not only a regular source of income but also other benefits, specifically health insurance coverage. You can choose from several alternatives in order to maintain health insurance coverage even after you lose your job. You can choose to continue your plan through the company's COBRA program, but this means paying 100% of the monthly premiums which you might hardly afford since you already lost your primary source of income.

On the other hand, you can opt to buy temporary health insurance, which is health care insurance with a very short coverage period of one year or less.

Features and Coverage of Temporary Health Insurance

The coverage period for temporary medical insurance is very short. In some cases, you may be allowed to renew the coverage up to 36 months especially if you have never filed any claims during the first coverage and if you are still healthy.

You can pay monthly, quarterly or even one single payment. Companies usually grant a discount if you can pay the entire amount right away upon your enrollment.

Temporary health care insurance is an indemnity-type of coverage wherein you can choose to see any doctor or specialist. You will shoulder about 15-20% of the medical treatment cost, and the insurer takes care of the rest of the bill.

The cost of the premium is usually much less than what you would pay for a regular type of health insurance.

Limitations of Temporary Medical Insurance

Unfortunately, temporary health insurance covers only treatments related to illness or accidents. You cannot use it for check-ups, lab tests or immunizations unless these are related to the illness or accident.

Furthermore, it does not pay for medical conditions which have been pre-existent within the last three years. You may not also be allowed to buy temporary health insurance if you are already covered by another policy.

And once you have used the plan, you might lose your chance to renew it for another short-term period or buy short-term insurance from another company.


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