Posted on : May 28, 2009 | By : Sophie Callahan | In : Health Insurance
Health insurance is becoming more and more expensive as well as scarce. People are losing their jobs as well as their health insurance and small businesses have been deciding to cut health care coverage totally. But with medical costs rising, health insurance is a necessity. Many people are beginning to look for jobs, are changing jobs, or waiting for their new jobs’ health insurance to check in. The best solution is short term health insurance which is better than no health insurance at all.
Short term health insurance is exactly what it says, short term. Policies can be purchased month to month for periods of 12 to 36 months. Though short term plans aren’t as comprehensive as individual health insurance plans and employer-sponsored health plans, they provide you with preventative measures at a cheap price.
Many short term health insurance plans are less than $100 a month and include coverage for services such as hospitalization, diagnosis, or emergency care. Short term health insurance plans don’t cover preventative care such as annual physicals, doctors’ visits, or prescriptions. Short term plans are used for the meantime while individuals are searching for more permanent plans.
Unfortunately individuals with preexisting conditions cannot get a short term health insurance policy because these policies are underwritten. Short term health insurance plans are generally for healthy individuals.
According to a UnitedHealth Group poll, more than half of young adults surveyed lack information about their options for health insurance. The poll surveyed 1,000 young adults between the ages of 18 and 21. The survey found that 67% of the students polled haven’t made any plans for health insurance when they graduate. 69% of those covered by their parent’s health insurance plans are unclear about the details of their coverage as well as 26% having no idea when their coverage will end.
Approximately 87% state that educators should do more to communicate information about obtaining health insurance and the basics of health insurance. Some of the options recent graduates and young adults have include:
- Employer-sponsored health insurance: If you’re lucky to get a job out of college, you will most likely have the option of an employer sponsored group plan. Benefits are usually very comprehensive and your employer pays for a portion of it if not all.
- Short term health insurance: If you are looking for a job and working part time or not at all for the meantime, getting a short term health insurance plan may be beneficial. Plans tend to last up to one year and you can cancel at any time. They are fairly low cost but they will most likely not cover any preexisting conditions.
- COBRA: COBRA, or the Consolidated Omnibus Budget Reconciliation Act of 1986, lets students keep their coverage under their parents for up to 36 months. However, COBRA plans are expensive.
- Individual Health Insurance plan: If the above options don’t seem appealing, an individual health insurance plan is another option. Either going directly to a carrier like Aetna, or a health insurance broker, you can choose a plan that caters to your needs. You can also cancel at any time if you get a job or find another plan that suits you better.
Just remember, health insurance is vital and everyone should have it. If something were to happen, it will cost a lot more to treat you than that couple hundred you pay a month for your coverage.
A press release from Humana out today introduces their new short term health insurance plan. HumanaOne wants to help people who have lost their jobs recently due to the economic downturn get health insurance, even if its temporarily. The Short Term Medical health insurance plan offer affordable, temporary insurance for people in the following situations:
- Graduating college students
- People in between jobs
- Part time, temporary, or seasonal employees who are not offered employer-sponsored health plans
- Retirees not yet eligible for Medicare
- Unemployed individuals
- And new employees waiting for their benefits to begin
HumanaOne’s Short Term Medical health insurance plans are available in Alabama, Arizona, Colorado, Louisiana, Michigan, Nebraska, Ohio, and Wisconsin. The plan is flexible offering different options depending on the individuals needs. Deductibles range from $500 to $5,000 for individuals and $1,000 to $10,000 for families. The plans have a $2 million maximum benefit and include prescription drug coverage for time periods between 30 days up to 6 months or a year.