Long-Term Health Insurance Vs. Short-Term Health Insurance

when choosing between a short term health insurance plan and a major medical plan there are three things you need to consider this video will outline some of the important differences between short term health insurance policies and major medical individual or family health insurance policies first compare the benefits provided second be aware of eligibility guidelines for the different types of coverage and third be aware of how your ability to cancel and renew the coverage differs with the two products first let's talk about benefits both short-term health insurance policies and major medical individual and family policies typically cover benefits like visits to the doctor unexpected trips to the emergency room and unexpected surgeries or x-rays some plans also cover the cost of some prescription drugs however major medical policies also typically cover things like preventive care often at no out-of-pocket cost maternity benefits either as part of the policy or with an add-on option brand-name and generic prescription drugs are often but not always covered and chiropractic care is sometimes covered as well new health insurance policies issued on or after September 23rd 2010 are prohibited from putting a lifetime dollar limit on most of the medical benefits you receive short-term plans typically don't cover all the benefits provided by a major medical plan and most short-term plans do have caps on the amount of coverage they'll provide over the term length of the policy purchasing a short-term medical insurance plan it may make you ineligible for a HIPAA eligible plan it will also not allow your credible coverage to continue now let's talk about eligibility insurance companies Maeve's different rules to determine if you qualify for short term health insurance plan then the rules they use to qualify you for a major medical plan in most areas of the country an insurance company can decline your application for an individual or family major medical plan due to pre-existing medical condition you can be declined for short-term coverage for the same reason that said short-term insurance can be a little easier to qualify for in some cases you may also be able to qualify for a short-term plan that excludes coverage of your pre-existing medical condition by comparison if you qualify for a major medical insurance policy the insurance company must by law cover all of your new and pre-existing medical conditions although some exclusions may still apply if your major medical plan does not cover pregnancy or labor and delivery for example and in some instances there may be a waiting period before you're eligible for certain benefits finally let's talk about the differences between cancelling and renewing short-term coverage and cancelling and renewing major medical coverage for individuals and families in most instances you can cancel a major medical plan for an individual or family at any time and you can also cancel a short-term health insurance policy at any time however you're typically unable to get a refund for any premiums you pay in advance so for example if you pay for six months of coverage at once which is more common with short term coverage you're unlikely to get money back if you cancel the coverage after two or three months when it comes to renewing coverage major medical insurance is guaranteed to be renewable each year as long as you pay your bills and maintain your coverage your policy cannot be canceled short term insurance is different insurance companies are not required to renew your policy once your coverage term has run out so for example if you were to develop a major illness like diabetes or cancer you could keep your major medical plan forever and always have coverage for new illnesses but a short-term plan is only required to cover you for the contracted term often no more than six months so for example if you develop an illness during that six-month term the insurance company is not required by law to renew your insurance policy once the six month we hope this video helps you understand some of the important differences between short-term health insurance policies and major medical policies for individuals and families if you have questions that were not covered by this video please contact a licensed a health insurance agent at one eight hundred nine seven seven eight eight six zero

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