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What is Temporary Health Insurance?

Temporary health insurance is sometimes referred to as short term health insurance, and it's meant for those that do not yet have coverage under a group plan, but will have it in the future. A temporary health insurance plan usually lasts for six months, but can be canceled before that time. A person that needs temporary insurance will have to renew it if they want to continue; most policies can be renewed every six months for a period of up to three years, with each period considered to be a separate policy.

As its name implies, temporary insurance is only meant to be used for a few months. It's not meant to cover scheduled exams, vaccinations, check-ups, pregnancy, vision, dental or other preventive care, and it does not pay for pre-existing conditions. With temporary health insurance, these types of services will have to be paid for out-of-pocket. However, the temporary policy will pay for care that is provided as a result of an incident that happens after the policy is paid for, such as a hospitalization due to an accident or injury, or any related surgery or diagnostic testing. Keep in mind that every temporary plan is different, and be sure to read its fine print.

With most temporary plans, any hospitalization other than in an emergency will require a precertification, but these plans are still very useful in some cases. For instance, a person who is between jobs or someone who has just started a job but does not yet qualify for employer-sponsored benefits can use this coverage. Temporary health insurance is also an ideal solution for a person who has left their parents' plan or someone just out of college.

Temporary plans come with some restrictions; usually, anyone over sixty-five is not eligible. The providers of temporary health insurance plans are typically exempt from the legal strictures set out by the HIPAA (Health Insurance Portability and Accountability Act), meaning that they do not have to pay for treatment for pre-existing conditions. These plans come with a long health questionnaire, and applicants usually have to provide information on their hospitalization history, as well as details on their lifestyle, and their weight and height. If any of these factors raises the "red flag" on an applicant, their application will most likely be rejected.

Other than that, the process for applying for temporary health insurance is fairly straightforward (as long as the applicant is in good health). Once the application is filled out, the person pays the premium, and the policy is considered to be in effect. Then, the person can use the coverage if an emergency happens, but most companies will refuse to renew the policy for a period of six months if a claim is filed. Temporary health insurance is not meant to be a permanent solution, but it can bridge the gap between employer plans, and it can help those who are out of work to get the health coverage that they and their families need.