Understanding Short Term Health Insurance

If you have recently left college you may find that you are no longer covered under your parent's health insurance policy and will need to find cover until you get a job and fall within your employer's healthcare plan. Similarly, if you have just started a new job, you may find that your employer requires you to work for a few weeks or months before becoming eligible to join his healthcare scheme. These are just two of the many reasons that lead to a need for interim health insurance coverage.

So what exactly is interim health insurance coverage?

Well, as its name suggests, it is health insurance coverage with provides health cover for a short period of time to give you the opportunity to maintain cover while moving from one permanent health insurance plan to another. Coverage is normally issued for anything from one month to one year, although many companies today restrict policies to a maximum period of six months. In most cases insurers also understand that it is not always easy to know exactly how long you will need temporary cover for and so are often flexible in allowing you to extend cover past the original expiry date if necessary.

Interim health insurance plans normally provide similar cover to that seen on permanent policies but there are some very important differences.

Plans are normally strictly indemnity plans and will not cover you for preventative treatments, such as check-ups, and will also exclude dental and optical coverage. Pre-existing medical conditions and work-related illness or injury are also usually excluded.

Your interim health insurance policy will generally cover you for emergency medical care, prescription drugs, hospital and intensive care treatment, laboratory and x-ray work, ambulance care and, in some cases, in-home medical care.

So, how do you go about getting interim health insurance coverage?

Your first step should be to decide how many weeks or months you need the coverage for and when you want it to start. You then need to find yourself an agent who specializes in interim health insurance.

Study any policies offered carefully and pay close attention to the exclusion clauses and don't be afraid to ask questions about any concerns you may have. Review the application and make sure that all of your personal information is correct before you sign anything. Also, remember to keep a copy of all the paperwork for your own files.

The cost of an interim health insurance plan will vary according to the type of coverage that you select. You can however keep the cost down by choosing to have a high deductible added to the policy (the sum of money which you must pay towards your healthcare before the policy kicks in) with a 50/50 co-insurance option (the split in payment of each bill after the deductible has been met between your insurer and yourself) rather than the more common 80/20 ratio.

Also, don't forget that there are some extras that you may want to consider, depending on your personal circumstances. For example, with the high cost of prescription medicines, you may be better off buying the coverage rather than leaving it off.

The most important thing is to remember to read through any interim health insurance policy carefully and to make sure you are being offered the coverage that want and which you will be paying for.

Temporary Health Insurance - Know What Isn't Insured

Around 7 million people in the UK are covered by health insurance, the majority being covered through their employers. The problem is that few have really studied their policy documents and many misunderstand what is covered. And perhaps just as important, what isn't. If you expect health insurance to pay all your health costs, you're mistaken.

Health insurance is designed to provide protection for curable, short-term health problems and allow policyholders to jump the NHS queues to see consultants, be diagnosed, receive surgery or be treated. That sounds fine, but before you buy you need to appreciate the treatments and situations that fall outside the scope of the cover.

But first a word of warning. This article does not relate to any specific policy and the terms and conditions issued by individual insurers do vary. So please ensure you also check your policy documents. After reading this article, you'll know what to look out for!

Sorry – it's a chronic condition

If a condition can be cured and is not a long-term problem, your insurance company will classify it as acute and should meet the cost. If your problem is incurable or it's a problem that, despite appropriate treatment, will be with you for a long time, then your insurance company will classify it as chronic - and no, you won't be covered.

But drawing a firm line between what is acute and what is chronic is fraught with problems, and leads to the biggest area of conflict between insurer and policyholder.

Everyone agrees that diabetes and asthma are chronic conditions as you're likely to suffer from them for the rest of your life. So those sorts of condition are not covered.

Problems arise when the medical team initially considers a patients' illness to be curable, but the condition subsequently deteriorates and the doctors change their mind, it's now become incurable. This can happen especially in the treatment of some types of cancer.

In these circumstances, the condition is initially defined as acute and is therefore insured, but deteriorates and becomes chronic - and outside the terms of cover. This is possible as insurers retain the right to reclassify a condition from acute to chronic during treatment.

Sorry - it's too long term
The insurance company will not pay out for long term treatment. But you need to check your policy documents to see how they define “long-term”. You can find the situation where a course of drugs extends for say 12 months, but the insurer will only pay for ten months.

Sorry – it's preventative
Your insurance is designed to pay for the treatment and cure of conditions when they arise. It is not designed to pay for treatments that are used to prevent an illness.

Again, the problem of definition arises. Sometimes it is arguable whether a treatment is preventative or a cure. Take the drug Herceptin for example. This drug can be used in the early stages of breast cancer. Research shows that Herceptin can halve the incidence of cancer returning for women who have a particularly virulent form of the cancer known as HER2. In this situation, is Herceptin offering a cure or is it a preventative?

Insurance companies are split on the debate. Norwich Union, WPA, BUPA and Standard Life Healthcare will pay for Herceptin for HER2 patients whereas Legal and General and Axa PPP will not.

Sorry – the drug is not approved
Two of the main attractions for taking out health insurance are: to jump the queues at the NHS, and to get the latest treatments and drugs. But there's a rider.

Unless the drug has been approved for use by the NHS in England and Wales, by the Institute for Health and Clinical Excellence, your insurer is unlikely to approve its use. The problem is that the Institute's brief is not simply to decide whether a drug works, but to carry out a cost/benefit analysis to ensure that the benefits to the nation outweigh the financial costs of using it in the NHS. Not an easy brief - and one that has placed the Institute under scrutiny for the extended delays in drug approval.

The compromise hit on by the Financial Ombudsman is that if a health policy won't pay for the use of experimental treatments, then it should meet the cost of an approved conventional treatment with the policyholder footing the bill for the balance if the experimental treatment is more expensive.

Sorry – it's a pre-existing condition

The basic principle is that if you are already suffering from a condition when you start a policy, then that condition “pre-exists” the policy and any claims for its treatment are invalid.

For this reason, insurance companies insist you complete an exhaustive questionnaire before they agree to insure you. After all they need a clear picture of your medical condition before they quote. For many applications, the insurer will, with your approval, also write to your GP for specific details of your medical history. They like to have a complete picture.

So lets say some years ago you injured your knee playing football. It appeared to recover but now it turns out that you have a torn cartilage and need an operation. The insurer could argue that this is a pre-existing condition and you have to pay for its' treatment.

Some insurers try to accommodate these grey areas with a moratorium provision within your policy. These provisions typically say that so long as you have been symptom free for two years relating to any condition you've suffered from within the last 5 years, then they will pay for subsequent treatment. Not all policies have these moratorium provisions and the time periods do vary between insurers. You should carefully read your policy.

Sorry – its not covered

Health Insurance is an annual contract – just like your car insurance. So when it comes to renewal, your insurer is at liberty to review not only your premium but also change the conditions on which your cover is provided.

Therefore, if your policy comes up for renewal mid way through a course of treatment, it's possible to find that your new policy no longer covers that particular treatment. This means that you will have to foot the bill for the balance of the treatment.

Furthermore, with ongoing advances in medical research, more and more conditions are becoming treatable. This progress has the effect of shifting back the dividing line between chronic and acute conditions.

This hits the insurers' pocket in two ways. With more conditions being reclassified as acute, the number of claims is increasing. And there's also a trend for new treatments to cost more – Herceptin being a good example. The net result is that the insurers are finding themselves having to pay out far more. This is inevitably passed back to you through increased renewal premiums. And in an attempt to reduce their risk exposure, insurers have a tendency to adjust their definitions and exclusions. This means that you must read your renewal notice closely before you decide to renew.

So when you are considering Health Insurance, be aware that everything is not always black and white. And if you've got insurance and need treatment, always contact your insurer without delay and get them to confirm that your treatment is indeed covered

Short Term Health Insurance - Here's What You Need To Know

Short term health insurance or temporary health insurance is a good way to alleviate the risk of an unforeseen and unfortunate event while in the midst of a transitional period. All of that to say that it is extremely important to make sure that you keep continuous coverage and do not let your health insurance coverage lapse.

Short term health insurance is very affordable as most plans are comprehensive major medical plans but without all of the extra benefits like copays for prescriptions and copays for doctors visits that can be quite pricey. Short term health insurance is a great way for students that need cheap health insurance coverage to obtain coverage in an inexpensive and easy manner. (Note, that temporary health insurance should not be a permanent substitute for a “real” health insurance plan but is most suitable when the student has a job offer with health benefits soon on the horizon or is getting married and will then have health benefits or some other similar scenario).

Many temporary health insurance plans can be compared, purchased, and then be made effective all online and within a couple of days or even hours. Medical exams are almost never required for short term health insurance (or for most individual health insurance plans for that matter – unless maybe you are approaching your 60’s and have not had a physical for 10 or more years). Almost all insurance companies offer online quoting for their individual and short term health insurance plans.

Although short term coverage is very cheap you will still want to shop around and find a well known and reputable insurance company. You can request health insurance quotes directly at the insurance company’s website but it is usually easier to request quotes from an independent website as they will show you health insurance quotes from 3 or more insurance companies that offer coverage in your area side by side for an easy comparison.

Health Insurance Coverage

Health insurance is something that everyone needs today. The rising cost of visiting a health care provider or a hospital stay makes it imperative that everyone have some type of health care coverage. Government statistics estimate that over 40 million people in America are not covered by any type of health insurance on any given day. That's an enormous number of people who really are taking a financial risk.

While most Americans are able to obtain some type of health insurance through their place of employment, many others, the underemployed, the self-employed and the unemployed simply don't know where to find good, quality coverage at a fair price. The Census Bureau estimates that nearly 15% of the population has no coverage. The long term effects of this are hard to quantify because it means that young children do not see a health care provider unless they are seriously ill. Unfortunately this approach while appearing to save money can be devastating to the long term health of the child.

Health care providers and other experts all recommend that every one have some type of health insurance for the necessary time when they'll need to visit their Doctor or hospital.

We’ve searched all over the web and have located a few quality companies that we feel are not only financially sound and secure, but which also offer competitive rates. You don’t need to even sit down and visit with an agent, all the information gathering and work can be done over the internet.

You’ll find the best life insurance for your needs that will comfortably fit into your budget. Solid life insurance will give you peace of mind and confidence.

Health Insurance 101

The changing healthcare and health insurance landscape in the United States has resulted in more individuals and families purchasing health insurance coverage on their own. Rather than touch on the number of reasons why this is the case, I would like to provide individuals and families finding themselves in this position with ten basic ideas to assist them with getting the best health insurance policy for their specific situation. Below is a combination of ten questions and suggestions that will provide the tools necessary to get a medical insurance policy that will best work for you and your family.


1)What are your typical health and medical care expenses in a calendar year? Most people are surprised when they go through this exercise to learn that they would be financially better off in most years to purchase a high deductible health insurance plan and use the premium savings to directly offset heath care expenses throughout the year.

2)How long do you anticipate needing the health insurance coverage? For example, many companies sell temporary policies that can be put in force for 1-6 months and they are relatively inexpensive. If you are in between jobs or in a waiting period for employer coverage, this may be your best option.

3)What is your budget? If your budget is tight, having a $1000, $2500 or even $5000 deductible is better than having no coverage at all. The ability of doctors and hospitals to save and prolong life in the United States is in many cases extraordinary. However, their treatment is not free and going without health insurance coverage can in some cases result in you and/or your family losing an entire life’s worth of savings and assets.

4)Be careful to choose a plan that covers the “big stuff”. It is nice to have a policy that covers items such as: physician office visits, routine physicals, outpatient testing, and blood work. However, it is essential to have coverage for major services such as cancer treatment, transplants, critical illness, traumatic accidents, and infectious diseases. Find out the lifetime maximum amount as well as if the policy contains “internal” dollar limits.

5)Always carefully read and understand the pre-existing condition clause and policy exclusions so that you will not be surprised down the road if a claim is denied. This is important whether you are purchasing a standard medical, temporary, or student health insurance policy.

6)Does the insurance company you are considering have a substantial network of preferred doctors and hospitals in your area? In addition to family doctors, what type of access will you have to specialists and the best hospitals in the event you or a family member is diagnosed with an illness that requires specialized care? Also, what are your options for preferred health care providers when traveling?

7)If you need to go “out of network”, will you still have coverage? Most insurance policies will have coverage in the event you need to go outside of their network for care. However, review how these out of network claims will be paid. Will there be an additional deductible? How are reimbursement levels determined for out of network claims? What is your maximum out of pocket for out of network claims?

8)Are you looking for an opportunity to reduce your taxable income? If so, make sure your plan qualifies as a high deductible health plan and look into all of the aspects of a Health Savings Account. In the right situation, HSAs can be an excellent way to pay for eligible health care expenses, reduce your taxable income and save for retirement.

9)What are the financial ratings of the insurance company you are considering? A.M. Best, Standard & Poor’s, and Moody’s are organizations that rate the financial stability of insurance companies.

10)What type of customer service will you get from your insurance agent? Do they specialize in health insurance? Do they have a staff that is willing and able to assist you in the event you have a claim, billing, or other customer service problem?

If you do not have the time or patience to look into all of the items mentioned above, develop a relationship with an independent insurance agent that specializes in evaluating and servicing health insurance policies. A good independent insurance agent will be able to save you time, money, and be an excellent resource for evaluating all of the items mentioned above.

Control the Cost of Your Health Insurance

As many of us had expected, the New Year brought along with it both tremendous challenges and opportunities for all of us both personally and professionally. Employers continue to face the major challenge of controlling the cost of their health insurance and other employee benefit programs. Organizations that can best get a handle on the cost of their employee benefit programs have an excellent opportunity to gain an advantage over their competition.

What are some practical ways to control the cost of your health insurance? Here are a few suggestions:

1) Investigate all of your traditional and consumer directed health plan options. Many companies are easing into consumer directed plans by offering them as part of a "dual choice" program.

2) Out of network benefits. If your PPO network has adequate access to network providers, plan designs that strongly encourage the use of preferred providers save premium and claim dollars while the insured still gets the needed care at a discounted rate.

3) Prescription drug coverage. Rx plans that encourage the use of generics and require mandatory mail order for maintenance medications are an efficient use of your benefit dollars.

4) Encourage wellness. What is the old saying? An ounce of prevention is worth a pound of gain.

5) Consumerism. Access to the tools necessary to be a “good” healthcare consumer will allow individuals to get the best care at the best price.

If you do not have time to personally handle the suggestions made above, consider enlisting the services of an independent insurance broker that specializes in designing and evaluating health plan options. A good insurance broker should be able to save you time, money, and ultimately serve as a trusted resource for plan recommendations now and in the future.

Short Term Health Insurance

Temporary short term health insurance can be a huge relief for you and your family if you suddenly find yourself without health insurance benefits. This type of insurance will provide you with coverage for major illnesses and injuries. It can also assist you with routine checkups and prescriptions under the guidelines of some programs. You may also be able to obtain dental coverage as a package deal. This type of insurance plan is generally allocated for a time frame of one month to one year, depending on your needs.

This type of insurance program is a great investment for those who are between insurance plans, unemployed, self employed, in college, laid off, or who are seasonally employed. For some individuals, temporary short term health insurance is cheaper that the COBRA program offered by their employer.

Most companies who offer this type of insurance allow you to pay the premium on a monthly basis. The premium will depend on various factors including the state you reside in, your age, health, type of coverage you are wanting, and if you are getting an individual plan or a family plan. Some plans will require you to get a health examine and inquire about tobacco habits as well.

Almost all temporary short term health insurance programs have a deductible. This means you will have a portion that you pay out of pocket before the plan will pay anything. Most plans allow you to choose your deductible amounts. You will likely have a different deductible amount for emergency room care than you do for in hospital treatment. The higher the deductible, the lower your monthly premium will be. However, be careful not to choose a deductible that is so high you can’t afford it.

Temporary short term health insurance coverage is an excellent idea for anyone without health insurance. More than 16 million plans are issued in the United States each year. Health insurance is something everyone will need at one time or another. Just one uncovered incident can cost you thousands of dollars. To find out the plans available in your state, contact your insurance agent or search online.