How Much Does It Cost?
Short-term health insurance tends to be significantly cheaper than other types of insurance, including COBRA continuation coverage. Some people may qualify for comprehensive coverage for less than $100/month. This is why some people who lose their job-based insurance choose short-term policies rather than electing COBRA. However, if you fail to elect and exhaust your COBRA continuation coverage, you will lose several consumer rights - including your right to coverage of any preexisting medical conditions, and your right to purchase a permanent individual health insurance policy at a later date.
If you do decide to buy a short-term health insurance policy, make sure you understand what you are getting for your money. If you find a policy for $50/month, but it has a $3000 deductible per injury or illness, you will be paying for virtually all of your medical expenses out of pocket. Such a policy would only protect you if you suffered an extremely costly injury or illness. Make sure you read your policy papers and understand what your likely out-of-pocket expenses will be.
What Is Covered?
Short-term policies generally do not cover routine preventative care or preexisting conditions. However, if you become ill or injured while covered under a short-term health insurance policy, any emergency services, hospitalization, diagnostic test, or follow-up visit charges you incur should be covered under your policy. As long as your health care expenses can be linked to a specific illness or injury suffered during the term of coverage, you should be covered.
