While working freelance may give you a better balance between work and personal life, you do lose out on perks associated with being employed by someone else. The absence of an employer-sponsored health insurance plan is a significant disadvantage of working on your own. Nevertheless, there are many insurance options available for the self-employed. Let’s look at the prospect of short term or limited-duration health insurance and why it may be the best choice for you.
What Is Short Term Insurance?
Short term health insurance is a form of insurance that seeks to provide medical coverage for a preset, limited period. Typically, this period is up to 12 months with an option to renew the insurance. This form of insurance is not intended to be used to provide day-to-day coverage but is an excellent basic and temporary option to cover medical emergencies.
Savings with Limited-Duration Insurance.
As with all insurance, your premium costs tend to rise with age. While still having basic medical cover in place, short term insurance is less expensive than other long term health insurance plans. As these plans are non-ACA compliant, they could cost up to ⅕ the price of regular ACA plans. If you are generally healthy and do not use prescription drugs regularly, these plans could help you save money in the long run.
Coverage
Short term health insurance plans provide minimal coverage, and unlike ACA plans, they are not bound to cover mandatory essential health benefits. Non-ACA compliant plans are sometimes subject to additional fees in individual states and are not available nationwide. Typically, these plans do not cover the following:
- Pregnancy, associated maternal and prenatal care.
- Hospitalization
- Prescription drugs
- Immunization
- Substance abuse
- Mental health
Before You Sign Up
Always shortlist a few insurers and understand what’s on offer while comparing the options available.
- Request for quotes for plans and check if there are any fees associated with the application.
- Check the network of the insurer and ask about conditions for accessing their service.
- Enquire about deductibles, coinsurance and copay requirements
- Ask about penalties for early termination and how extensions work.
Since health insurance is essential to keep you from being buried under medical debt, research plans before you settle on one. A licensed insurance agent could guide you towards an insurance plan that’s well suited to your needs.
