“My new job starts in a few weeks, then I have a 90 day probationary period before benefits start. I don’t want to sign up for the Affordable Care Act and purchase my own healthcare when I will have benefits with my new job. Is there an alternative?”
Fortunately, there is an alternative. Short Term Health Insurance is available to people like you who are between jobs, need insurance to fill the gap between starting a new job and the end of the probationary period. It may not meet all of your needs, but it will help cover expenses when you need it.
Short Term Medical Insurance is for those who are seasonally employed, between jobs and are waiting out that probationary period before the benefits start. As you wait out those long 90 days without health insurance it never fails; you wake up one morning with body aches, fever and chills – the flu. Now you have a visit to the doctor, and an $85 to $135 bill. The prescription is even higher. Without health insurance, there goes your paycheck. Short term medical insurance is there for occasions just like these.
Last January, I was without healthcare coverage for a month, and one doctor visit was $85 out of pocket (he gave me a discount.) Short term health insurance wouldn’t have helped because it was for a pre-existing condition, but when my car was struck by a hit and run driver and I didn’t go to the doctor for the stiff neck and shoulder pain, it certainly would have been covered. Short Term Medical Insurance is for just that – the unexpected illness or accident that can happen at anytime, and usually does when we’re uninsured.
There are a few things to remember about short term medical coverage though; including the first two words – it is meant to be short term. The coverage is not meant to be a permanent solution.
- Short term coverage doesn’t meet the 10 Essential Benefits, so it cannot be used to replace healthcare coverage.
- It doesn’t cover pre-existing conditions, so if you were diagnosed with a condition before coverage began, you won’t receive benefits for that condition.
- The policy isn’t renewable. Again, it is only a short term policy and at the end of the term, you can purchase a new policy provided your health hasn’t changed.
- You may be charged a penalty for not signing up for the Affordable Healthcare Act. You can be charged up to $95 per individual or $285 per family or one percent of your income, for 2014.
If you’re between jobs, or you’re waiting for employer sponsored benefits, call an AC Financial Adviser at 800-564-3136 to compare Short Term Medical with Major Medical.
