Many people are being lured into Short-Term insurance policies with the thought or hope they will be covered. It isn’t that simple. People are looking at the cost of Qualified Health Plans and thinking there must be a cheaper option. There is. Going without insurance altogether and hoping nothing happens. Short of that, there are short-term policies (pun intended). A short-term policy is only good for 3 months. And yes, they are cheaper. Some insurance carriers are offering back-to-back insurance policies, so you can have six-months of uninterrupted coverage. So what happens when that runs out?
You must do this all over again. Only now you have no choices. You can either get a short-term policy or have nothing. During the process of getting the short-term policy, you will notice they ask health-related questions because they can. If they choose not to ensure you, they can. When you come up for renewal, they don’t need to ask any questions because they know your health status. You’ve been with them for six months. If they decide not to renew you, they can. Now what?
You have to wait for the next Open Enrollment and your insurance won’t be effective until January 1, 2019. Other insurance companies won’t touch you because you’ve been declined due to medical reasons. Did I mention you will also have to pay the penalty?
People who buy these plans tell me they are “covered” not knowing they are just barely covered, if at all. I am working on two cases right now, whereby they had short-term coverage that isn’t paying their claims. The insurance company claims it wasn’t disclosed during the application process so they are denying it.
Short-term policies are designed to provide stopgap coverage, not be major medical coverage. To know more, please don’t hesitate calling me at 512-417-6058.