Most employees that leave a job also leave their employer-sponsored medical coverage behind. This can be a chancy move, especially if you do not have other insurance options readily available.
If you've already left your job, then you've most likely found that obtaining affordable health insurance isn't easy when you're between jobs. COBRA is an option that lets you keep your previous coverage, but monthly premiums are usually expensive and can be unaffordable while unemployed.
Temporary insurance, a short-term form of health insurance, can be an affordable alternative to the high premiums associated with COBRA; consider Short Term Medical Insurance as one option. It is designed to provide a bridge between finding your next job and leaving your former employer-sponsored plan.
Having a short-term policy reduces the risk of being unprotected against unforeseen injury or illness while you're between jobs, but most policies exclude pre-existing conditions.
Premiums for short-term coverage are usually much cheaper than COBRA, but costs can still be a burden for someone without a job. Although finances might tempt you to delay insurance until you find another job, remember that financial protection is a primary reason people buy short-term health insurance.
One unexpected hospital admission can leave someone without coverage with hundreds or thousands of dollars in bills. For example, an emergency appendectomy can cost between $11,000 and $18,000, and medical bills are a common factor in personal bankruptcies.
Short-term coverage also helps preserve continuity of credible coverage for rules that prevent exclusions for pre-existing conditions when gaps are short. Individuals who avoid a break in credible coverage exceeding 63 days are generally treated as maintaining continuous coverage, and some short-term policies count as credible coverage even if they exclude pre-existing conditions.
Depending on state rules, short-term policies may run from 30 days up to one year. Most plans offer paying by monthly installments or a single up-front payment that covers a set number of days, with single payments often slightly cheaper.
Temporary insurance is intended as a short-term solution, not a long-term plan. Once you find a new job, review your new employer's insurance offerings and determine when new coverage would start if you enroll. For other temporary coverage options related to staffing and placement, see Temporary Services Program Insurance.
If you need help comparing options or enrollment timing, talk to an agent.
Frequently Asked Questions
What is short-term health insurance?
Short-term health insurance provides temporary medical coverage for a limited period to bridge gaps between longer-term plans.
Does short-term insurance cover pre-existing conditions?
Most short-term policies exclude pre-existing conditions, so they typically will not cover treatment related to those conditions.
How long can short-term coverage last?
Depending on state rules, short-term coverage commonly ranges from 30 days up to one year, though terms vary by policy and jurisdiction.
Is short-term insurance a substitute for employer-sponsored coverage?
No, short-term plans are meant as temporary protection and are not a full substitute for comprehensive employer-sponsored coverage.