Who Needs Short Term and Temporary Health Insurance?

Because of its low cost, high coverage amounts and fast purchase process, short term health insurance serves an important function for certain groups of healthy people:

• Part-time and temporary employees are among the most likely individuals of short term health insurance as many corporate plans do not cover part-timers.
• People between jobs are also among the most likely in need of temporary medical insurance. Many people who are laid off or are between jobs can continue coverage with their previous employer under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for up to 36 months depending upon the circumstances, until a new employer's plan kicks in. However, some individuals might experience shock when learning what their COBRA premiums will be in order to maintain a corporate plan. If COBRA premiums are too high for your budget, and you don't need coverage for pre-existing conditions, an affordable short term policy with lower premiums might be the solution for you.
• Recent college graduates who no longer are covered by their student health insurance plans are another group of individuals looking for short term health insurance. Most college grads will look for jobs offering health insurance benefits, but until they succeed, short term insurance can fill the gap.
• Those losing dependent status under their parents' health coverage are also likely consumers of short term coverage. If you reach age 18 and are not enrolled as a full-time student, you will most likely be dropped from your parents' health insurance policy. In this situation, you will be eligible for COBRA, but premiums can be very high. An affordable health insurance plan can keep you insured for less until you find a job that offers health insurance, or you enroll in an individual health plan.
• Finally, you might consider a temporary health insurance plan if you are temporarily without insurance for some other reason. Maybe you are on strike, recently discharged from the military or have retired early and need coverage until you qualify for Medicare.