For most people, there are three major categories of health insurance: group plans at work, conventional individual or family medical insurance, and individual or family short term health coverage. Each of these categories of health coverage have company-to-company differences within them. They also can have similarities between them. So, what makes short term health insurance different? The clue is in the name, "term".

In this discussion, when I use "term", I mean time period. Group plans and conventional health insurance share a characteristic. They are perpetual; that is, they remain in force until the insured person or family decides the coverage should end.

In contrast, short term medical insurance is temporary; that is, a policy lasts no longer than a specified time. At the end of that time (typically six months or twelve months) the coverage is over - whether the insured person would like it to continue or not. It is this characteristic of the short term policy that contributes most to the much lower rates that are usual with this kind of medical coverage.

Most insurers allow a covered person to request another short term policy and the new policy can usually begin on the same day as the old policy expired.

Short term insurance can serve a real need. There are more details at http://www.wavehelp.com/temporary-medical-features.htm

Labels: short term medical insurance

Many employees are getting caught in the cutback caused by our slowing economy.

Without a group plan that is at least partly paid by their employer, health insurance can be a heavy burden. Affected employees have less income which is bad in itself and they also have more expense for medical coverage. It is a budget buster.

COBRA is an expensive option required of large employers. But, if the employer is small (and not required to offer continuation of group medical coverage) or the expense of COBRA is too high, laid off employees have another solution.

They can get Short Term medical insurance. Almost always, this temporary health insurance is less expensive than COBRA or conventional health coverage. The good news is that it is very robust health insurance allowing the covered person to get medical treatment from any doctor, any hospital, any pharmacy. There is no need to obtain a referral. Get more information at http://www.wavehelp.com/short-term-medical-cobra.htm

Many students who graduated from high school a few months ago are getting ready to start their college career. Others are returning college students.

Short term medical insurance can be a smart choice for these young adults. It allows them to go to any doctor, any hospital, and any pharmacy. It simplifies medical care in this transition time when they are getting fully accustomed to living away from home. Rather than being restricted to "participating providers" they can go to a nearby provider who may have been recommended by a friend. Doctor services, hospital services, and prescription drugs are covered with just one ID card.

Though short-term health insurance is very comprehensive, it is also simple to use. Just go to the appropriate health care provider (no referral is needed) explain your symptoms and receive treatment. The provider will bill the insurance company directly (there is no office co-pay).

There is a wealth of additional information at http://www.wavehelp.com/frequently-asked-questions.htm and you can get a quote or apply on-line by clicking on the yellow rectange in the upper right corner.

Last time, I discussed the importance of short-term health insurance to people who are between jobs. But there are many others who can benefit from bridge insurance even if it is not a job change situation.

For example, some people are seeking to insure their child or children only (not insuring the adult family members) and want an inexpensive health insurance plan. Short term health insurance can be just the solution. You might ask, "Why would parents want a health policy that covers only their children?" Well, sometimes the group plan at work is a real bargain for the employees but is structured so that it is quite expensive for the dependents. In that case, private medical insurance can be appropriate. Or, if there is no group plan available and money is tight, parents might need to make the tough decision to insure just their children in order to stay within their budget.

Self employed persons or owners of small businesses frequently find temporary health insurance plans attractive. They may not have enough employees to qualify for a group medical plan but they need to save money. Short-term medical insurance can fill the need by providing excellent health coverage at a lower price.

Another kind of business is that which uses contract associates. Perhaps the business is cyclical and only needs help seasonally. Or, the business leader prefers the flexibility of using part-timers and cannot qualify for a group plan. Either way, temporary medical insurance can provide the coverage to the workers and save money at the same time.

What if timing is an issue. Perhaps you know that conventional health insurance can take a month or longer to issue. Short term health insurance is available as early as tomorrow morning - no waiting.

More details are available at http://www.wavehelp.com/short-term-medical-coverage.htm

Everyone has a life-long need for medical insurance because no one knows when they will need care. Since it is not possible to predict exactly WHEN we will need care, the smart thing to do is to ALWAYS have health insurance coverage. Temporary health insurance can help.

The majority of Americans receive their health insurance coverage through a group medical plan at work. If they make a smooth transition from one employer with a group health plan to another employer with a group plan, they will be continuously covered. But, what if they have a gap in employment? COBRA is a federal law requiring large employers to offer to departing employees the right to keep their coverage under the group plan after they leave. Such employees need to pay the employer THE FULL COST of the plan plus an optional administrative charge. Usually this is much more expensive for the employee because the employer-paid portion is not paid by the former employer any more. Many people in this situation do not know that they have another option - Short Term Health Insurance or Bridge Insurance. Usually, it is much less expensive than the full premium cost of a group plan (under COBRA) even though the coverage is very broad.

If you are between jobs, I urge you to check it out. You can read more at http://www.wavehelp.com/short-term-medical-cobra.htm

You can get a no-obligation quote at http://www.wavehelp.com/free-quote.htm

Short Term Health insurance is a flexible kind of coverage. There are several choices you can make to fit it well into your situation.

One choice you can make for the short term coverage is to decide when you want it to begin. Most times, you can have medical coverage as soon as tomorrow morning (at 12:01 AM). You can also delay the beginning of health coverage for 30 or 45 days if you wish to do so.

Another choice you can make is the way in which you pay for your temporary health coverage - that is, you can pay a month at a time or you can pay for the entire coverage period all at once. Usually, people who want to have bridge insurance to cover them while they are between group health insurance plans know exactly how long they will need the coverage and can select to pay all at once. This is a way to save money on bridge health coverage. But, if you don't know how long you will need the coverage, paying monthly can be better because you can cancel the health insurance before the term is up if you want to and you will only have paid for the bridge health insurance for as long as you need it.

In many states, you can choose short-term medical insurance with a maximum term of either six months or twelve months. The temporary health insurance is less expensive if you select the six month plan. Of course, you don't need to use all six months - just as much as you need. The six month plan is cheaper because the health insurance company views it is a lower risk. They only need to cover you for a maximum of six months rather than a maximum of twelve months and fewer problems are likely if the time period of health coverage is shorter. If you know you will not need your short-term health coverage for longer than six months, pick the six month plan because it is cheaper. If you are not sure how long you will need short-term health insurance, pick the twelve month plan to maximize your flexibility. It is just a little bit more expensive.

You will also be asked to select how high you want the maximum lifetime limit to be. Of course, the higher limit costs more than the lower limit. I urge you not to fall into the trap of thinking, "What can happen in a few months?" In fact, what can happen ranges from "nothing" to "something awfully expensive". Choose carefully on this one.

Next, you'll need to choose your deductible. As with all insurance, the deductible is what you pay at the beginning before the insurance company begins to pay. Naturally, if you pick a higher deductible, you limit the exposure of the insurance company and they charge less. Many insurance professionals recommend that you pick a higher deductible if you have a savings account you can use to pay the initial charges. Pick what you can afford. It is not an especially good outcome to get all healed up and come home broke because you've had to empty your savings account.

Hand-in-hand with the choice of deductible is your last decision; what rate of payment do you want. Rate of payment describes the cost sharing that occurs for a while after you have met your deductible. Depending on the state and the deductible amount, you can get 100/0, 80/20, or 50/50 coinsurance where the lower number is percentage you pay up to the maximum out of pocket limit (which is usually fixed).

I hope this has helped. There is some more detail at http://www.wavehelp.com/temporary-medical-features.htm

Many people do not know that there exists a short-term medical insurance option. I'll spend a moment explaining this briefly so that you will know.

Conventional health insurance (also known as major medical insurance) is the kind that most people know about. Group health plans at work are usually of this sort. So are individual (or family) medical insurance plans. To get this kind of health coverage, you fill out an application disclosing your height and weight, your use of tobacco, alcohol, and drugs, and all your present and past medical conditions and send it in with a deposit. When the application gets to the insurance company, they carefully evaluate all the facts of your health situation and decide if they are willing to insure you and what they will charge you for health insurance; this process is called "underwriting" and can take as long as 30 days or more. They may accept your application as submitted or they may send you a counter-proposal offering somewhat different terms; you are free to accept the new terms or not. If you accept, you'll be insured. If you reject their proposal, they will give you a refund and you will not have health insurance from them.

Once the insurance company and you have reached agreement, you are in control. By that, I mean that the insurance company is stuck with you no matter how expensive it may become to provide you with the medical care you need. As long as you continue to pay the premiums, you will continue to have insurance.

The cost of conventional insurance reflects that you are in control. The health insurance company makes you pay for the privilege of forcing them to keep insuring you.

Short-term medical insurance differs in one major way. The policy has a time limit. At the end of the time limit, the insurance company can walk away from the deal. This is not calloused indifference on their part nor cruel. It is just part of the contract. Because they can rely on this method to limit their involvement and their costs, they offer this kind of insurance at much lower rates and this can be very good if you know you will be able to swing into another insurance plan before the time limit runs out.

More details next time or go to http://www.wavehelp.com/short-term-medical-insurance.htm for more details now.