Due to health care reform, short term health insurance has gained a lot of popularity. These plans provide great coverage for healthy individuals and families and the plans are typically HUNDREDS of dollars cheaper than long term policies. However, short term health insurance is not considered qualified coverage and therefore could still cause you to be penalized by the government as if you did not have any coverage.
“Well, if I am still going to be penalized, what is the point of getting a plan?” The answer is simple: when you do not have health insurance, and something horrible happens to you, there is no limit to the amount of money you will be required to pay for your medical bills.
Short term plans still have deductibles, which means once you pay your deducible the plan then pays for the vast majority – if not 100% — of your medical bills for the remainder of the term. Keeping in mind that short term plans are significantly cheaper than long term plans, often times people can afford to choose a plan with a low deductible – some companies have policies with deductibles as low as $250. Additionally, short term plans have great coverage before the deductible; like coverage for doctor visits, injuries, illness and more.
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