Short Term Health Insurance Plan as the name suggests is for a smaller period of time. Its features too are hence considering what is possible in a shorter period of time and hence lack the exhaustive capacity of the normal health insurance plan.
Short Term Insurance is more of a last resort when one is switching jobs or has been fired, losing the health insurance provided by the employer. However this temporary arrangement seldom covers the actual medical problems and is more a safety net in case of an unforeseen accident or illness which might need big medical expenditure.
Doesn’t cover minor health problems
There are many disadvantages to a short term health insurance plan, especially compared to the standard health insurance plans. The major disadvantage is that it doesn’t cover the minor health problems like defects of vision, dental problems etc. In short the more day to day medical problems likely to occur are not covered at all by the short term insurance plan.
This is a major downside, especially if a person is considering the insurance for a period of more than a quarter. It is very hard to pass half a year without facing any minor health problems, which will then have to be paid from the person’s pocket in spite of making monthly payments for a health insurance.
Ineligibility for HIPAA Plans
Those who are going to take a short term health insurance plan should think twice about it. If they have existing medical conditions, then getting insurance might become very difficult. Such people benefit from HIPAA plans which are more expensive than the standard health insurance plan.
However, those who take a short term insurance plan become ineligible for a HIPAA plan. This is a major disadvantage and you might have to take up your case with the health advisor to find out your rights according to the Health Insurance Policies.
Renewal and Maximum Time Period
A short term health insurance plan might not always allow you to renew. Some policies allow renewal for a maximum of one or two times. Given that the plan itself is opted in the face of uncertainty this turns out to be a major disadvantage as one can never be sure of what is the time frame for which they would be out of job, especially if the break is not planned.
Standard Coverage for Prevention Not Provided
A short term health insurance quotes does not cover for the costs of preventive care or consulting a doctor. It doesn’t include such costs as immunization or even physicals and dressing etc. along with excluding vision, dental and other minor issues.
The plan, doesn’t cover for pre-existing medical problems either, including those for which one has taken diagnosis and treatment in the past 3 -5 year, unlike the case of an insurance available from the employer which can be extended under government rules.
Thus this insurance plan is only a stop gap solution and has too many disadvantages to be considered for the long term.