The definition of pre-existing condition will probably be different under a short- term plan. It can depend on the amount of time that the insured has consulted with a medical doctor, the medication taken for the condition or any treatment received. Insurers typically consider any such event occurring in the past 6 months to 3 years as part of a pre-existing condition.
After the Affordable Care Act (ACA, or Obamacare) was passed, health insurance availability for all people has increased. This is due to the fact that it requires the sale of health coverage to almost everybody, regardless of their health status. This means that even people who have been rejected from short-term coverage would qualify under most standard health insurance plans.
Starting in 2014, temporary or short-term insurance policies were found not to meet the standards of the ACA and are therefore not considered an “approved” health plan. For some people, it is possible to save more money from the cost of temporary insurance than the fine for not having any insurance, which is the greater of $95 or one-percent of a person’s adjusted gross yearly income.
Even though temporary health insurance has drawbacks, it does have some unique advantages. It is less expensive than traditional insurance, starts 24 hours after a person is approved and most policies don’t restrict a person to preferred healthcare providers. This means that if they need urgent care, they can be covered at any hospital or doctor in the United States. Finally, there is the biggest benefit offered by short-term insurance: it allows people to get some form of health coverage until they become eligible for a complete plan. This could make it an attractive option for those who are currently uninsured, but will soon be starting a new job which offers them a standard health insurance plan.
It does have some disadvantages that should be considered, however. Those who apply for this type of insurance may lose their eligibility for COBRA. Short-term insurance is practically non-existent for those over 65 and it doesn’t cover preventive treatment, vision or dental.
Pregnancy is treated differently under short-term health insurance. In most cases, it will be seen as a pre-existing condition and thus not covered at all. Taking all of this in consideration, some individuals may find that purchasing insurance under the Affordable Care Act would be a better solution than opting to get a short-term health insurance policy.
