Health insurance is an essential aspect of life in the United States. However, the high cost of premiums has made it difficult for many people to afford insurance. According to a survey by the Kaiser Family Foundation, the average annual cost of employer-sponsored health insurance for a family in 2021 was $21,342. This cost is out of reach for many people, particularly those who are between jobs or waiting for their employer-sponsored insurance to kick in.
Short-term health insurance is an alternative that can help bridge the gap between insurance coverage. Short-term health insurance policies provide coverage for a limited period, typically between one and twelve months. These policies are often more affordable than traditional health insurance, making them an attractive option for those who need temporary coverage.
This article will discuss how to get affordable short-term health insurance in the US.
What is Short-Term Health Insurance?
Short-term health insurance policies provide temporary health insurance coverage for a limited period, typically between one and twelve months. These policies are designed to provide coverage for individuals who are between jobs, waiting for their employer-sponsored insurance to kick in, or who are not eligible for traditional health insurance.
Short-term health insurance policies typically have lower premiums than traditional health insurance policies. However, they may have limited coverage and may not cover pre-existing conditions. Short-term health insurance policies are not considered comprehensive health insurance and are not required to comply with the Affordable Care Act (ACA) regulations.
How to Get Affordable Short-Term Health Insurance?
Compare Plans
The first step in getting affordable short-term health insurance is to compare plans from different insurance providers. You can start by researching different insurance providers online and requesting quotes from them. Some insurance providers, such as UnitedHealthcare, offer online tools that allow you to compare plans side by side.
When comparing plans, it’s essential to consider the benefits and limitations of each policy. Look at the deductible, coinsurance, out-of-pocket maximum, and any exclusions or limitations. You should also consider the network of healthcare providers that the plan covers.
Choose a High-Deductible Plan
Choosing a high-deductible plan can help you save on premiums. High-deductible plans have a lower monthly premium than traditional health insurance plans but require you to pay a higher out-of-pocket cost before the insurance kicks in. If you’re generally healthy and don’t need to see a doctor frequently, a high-deductible plan may be a good option for you.
Consider Supplemental Coverage
Short-term health insurance policies may have limited coverage, so it’s worth considering supplemental coverage. Supplemental coverage can help cover the gaps in your short-term health insurance policy, such as deductibles and copayments.
One type of supplemental coverage to consider is a hospital indemnity plan. Hospital indemnity plans provide cash benefits for each day you’re in the hospital, which can help cover your out-of-pocket costs. Another type of supplemental coverage is critical illness insurance, which provides a lump sum payment if you’re diagnosed with a critical illness, such as cancer.
Choose a Shorter Coverage Period
The longer the coverage period, the more you’ll pay in premiums. If you only need coverage for a short period, such as a few months, consider choosing a shorter coverage period. Choosing a shorter coverage period can help you save on premiums and avoid paying for coverage you don’t need.
Consider a Health Savings Account (HSA)
If you choose a high-deductible short-term health insurance policy, you may be eligible for a health savings account (HSA). An HSA is a tax-advantaged savings account that you can use to pay for qualified medical expenses. Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
