What is Short Term Medical Insurance?

One of the most common questions we see in the health insurance industry is what is a short term medical insurance plan? Short term medical insurance (STM) is a type of health insurance that is designed to provide coverage for unexpected medical expenses for a period of time from 1 to 36 months, instead of the typical calendar year. It is meant to be a temporary solution for people who may be in between jobs, waiting for their employer’s coverage to kick in, or who may not be eligible for traditional health insurance for various reasons. However, it has become a popular permanent alternative for health individuals and families seeking to lower their health insurance costs.

Before making any health insurance decision, you should always consult with a licensed health insurance broker. A broker can compare your options from multiple different companies and fully explain to you what is short term medical insurance. They can also advise you on whether or not a short term medical insurance policy is a good fit for you based on your unique insurance needs and wants.

Pros of Short Term Medical Insurance:

1. Affordable: STM insurance is more affordable than traditional health insurance because it offers less comprehensive coverage. It is designed to cover only unexpected medical expenses, such as emergency room visits, hospitalizations, and surgeries.
2. Flexibility: STM policies are available for different duration periods. So, it offers flexibility in terms of coverage periods.
3. Ease of enrollment: The application process for STM is simple and can be done online. It takes less time to apply and be approved for these policies than traditional health insurance policies.
4. No network restrictions: STM insurance allows you to choose your own doctors and hospitals, and you are not limited to any particular network.

Cons of Short Term Medical Insurance:

1. Limited coverage: STM policies do not provide coverage for pre-existing conditions, prescriptions, or preventive care, including wellness check-ups, vaccines, and birth control.
2. No guarantee of renewal: STM policies are temporary, and there is no guarantee that you will be able to renew your policy when it expires. So, this creates uncertainty and can lead to worry about securing the next policy, especially for those with a pre-existing condition.
3. No subsidies: STM insurance is not eligible for subsidies from the Affordable Care Act (ACA). So, people who need financial assistance to afford health insurance may not find STM as a helpful option.
4. Potential coverage gaps: STM policies do not provide comprehensive coverage, there is a likelihood of coverage gaps that can leave you vulnerable to high out-of-pocket costs in case of a major medical event.

So What is Short Term Medical Insurance?

In conclusion, short term medical insurance is designed to provide coverage for unexpected medical expenses, but it is important to weigh the pros and cons before enrolling in it. If you are in good health and need to bridge a gap in your health insurance coverage, STM may be a good option. However, if you have pre-existing conditions or need comprehensive coverage, traditional health insurance is the better choice. Therefore, before choosing any type of health insurance policy, it is essential to review your medical needs and determine the coverage option that best suits your situation.

We hope this helps answer your question of what is short term medical insurance. If you have any questions or want to speak with a licensed health insurance agent to get a free consultation to find out if a short term medical insurance plan is the right fit for you, then just submit a contact request.