Understanding Temporary Health Insurance

There are two basic ways that someone who needs short-term health insurance coverage can protect themselves: through a health insurance discount plan or through a short-term managed care plan. In this article, we will discuss the latter option -- a short-term managed care plan. Learn what a short-term managed care plan is, what it will and will not cover, special stipulations attached to these policies, and who will usually benefit from such a policy.

What is a Short-Term Managed Care Plan?
A short-term managed care plan is much like a traditional health insurance plan, with a few key differences:

• Pre-existing conditions not usually covered by short-term plans. So you would incur 100% of the cost for any treatment related to a condition that you already had when you bought the plan. If you have a medical condition, it is better to get a traditional insurance plan. There may be a waiting period, but eventually your medical needs will be covered.
• Preventative and routine care is also usually not covered. This means the regular visits that you make to your medical provider to ensure that you are healthy and that you stay that way. If you are having a routine dental cleaning, it will not be covered. If you are sick and need to see a doctor, it will likely be covered.
• With a short-term managed care plan, you must re-apply after each period expires. Your plan will not automatically renew and you must go through the entire application process again.
• Short-term managed care plans do have lower premiums than traditional health insurance plans, since services on these plans are very limited.
• Short-term managed care plans usually have a term of 1 to 6 months of coverage, although some companies will allow you to take out a plan for 12 months.

What Will a Short-Term Managed Care Plan Cover?
Now that we have talked about what is not covered under a short-term managed care plan, let’s take a look at the types of things these plans do usually cover. This list includes:

• Emergency treatments and visits
• Prescription drugs
• Labs and X-rays
• Some hospital stays, as long as they are due to an emergency situation and not a pre-existing condition

Who Will Usually Benefit From a Short Term Managed Care Plan?
These plans are usually good for healthy people who need an affordable plan for the “just in case” situations in life. Since these plans do carry smaller premiums, they are an affordable way for healthy people to protect themselves against the unexpected. They are also good for people who want a traditional plan, but need something to get them by for a few months, such as if they are in between jobs.