Affordable Temporary Health Insurance: 3 Companies to Look Out For

Short-term health insurance, also known as short-term medical insurance, is intended to fill temporary gaps in health insurance coverage. It may be suitable for individuals who do not qualify for group health insurance, cannot afford COBRA coverage, are ineligible for special enrollment in an Affordable Care Act (ACA) plan, or missed open enrollment periods. The best short-term health insurance policies offer essential benefits at a relatively low cost.

We evaluated affordable temporary health insurance options to assess their suitability for providing short-term coverage. This assessment involved examining various parameters such as maximum coverage benefits, coverage duration, coinsurance rates, deductibles, maximum out-of-pocket expenses, waiting periods, coverage for pre-existing conditions, network restrictions, pre-certification requirements, exclusions, and overall cost.

Affordable temporary health insurance refers to short-term insurance policies offered by private insurance companies to provide temporary medical coverage. These plans typically last for three months or less, although in some areas, they may extend up to one to three years. Similar to other health insurance plans, individuals pay a monthly premium in exchange for coverage of certain medical expenses. Unlike marketplace plans and most employer-sponsored policies, short-term health insurance plans are not subject to federal requirements.

Affordable Temporary Health Insurance

1. Pivot Health

One of our top affordable temporary health insurance companies is Pivot Health.

Pivot Health is a branch of HealthCare.com, a technology-enabled health insurance solutions provider with a team of health insurers, financial specialists, and technical experts.

Pivot Health offers web tools to help you prioritize your insurance needs, along with a range of available services. Setting itself apart, the organization provides discounts on prescription drugs and offers 15% to 30% off eye exams, glasses, and contact lenses.

Deductibles for Pivot Health plans vary from $1,000 to $10,000, with annual limits ranging from $100,000 to $1 million. Coinsurance amounts range from $3,000 to $10,000 for out-of-pocket expenses.

However, there are certain exclusions in Pivot Health’s coverage, including pre-existing conditions, vaccines, routine physical checkups, and injuries sustained during extreme activities. Additionally, there are waiting periods for illness coverage, with a five-day wait for illnesses, a 30-day wait for cancer coverage, and a six-month wait for services like a tonsillectomy.

2. Everest Reinsurance

Everest Reinsurance has been in the insurance business since 1973 and has an AM Best financial strength grade of A+ (superior).

The company provides a range of insurance policies, including property, casualty, specialty, accident, and health insurance.

Everest offers the FlexTerm Health Insurance Plan, a short-term health insurance option with monthly or pre-pay payment choices and a free-look period for unexpected accidents and illnesses. Coverage limits for the FlexTerm policy range from $250,000 to $1,500,000, with co-insurance and deductibles varying from $1,000 to $10,000, along with a $50 co-pay option.

UnitedHealthcare, underwritten by Golden Rule Insurance Company, a subsidiary of UnitedHealthcare since 2003, has been offering short-term health insurance in 25 states for nearly 30 years. UnitedHealthcare holds an A+ (superior) financial strength rating from AM Best. Their TriTerm Medical Insurance extends coverage from one month to 12 months, with the option to renew for up to 36 months. Policies feature network coverage with nearly 1,500,000 physicians and over 7,000 hospitals and medical facilities, alongside mandatory waiting periods. Preventative care options are available, with a $50 copay included in the Copay Select plan. Prescription coverage is provided with coinsurance, and some coverage for home health care, rehabilitation, and hospice is included.

The cost of short-term insurance varies depending on the plan, with monthly premiums and additional healthcare expenses being the responsibility of the insured. Short-term health insurance premiums are generally lower than those of Affordable Care Act (ACA) plans, but they may not cover as much, with only a portion of the monthly cost allocated to medical services.

Short-term insurance plans sold through the healthcare marketplace must meet specific ACA requirements, covering essential health benefits such as doctor’s services, hospital care, mental health services, pregnancy and childbirth, and prescription drugs.

However, temporary insurance plans may not cover pre-existing conditions, may refuse to pay certain providers, and often exclude coverage for services like maternity care and prescription drugs. Limited provider networks and restrictions on cost-sharing may result in higher out-of-pocket expenses for policyholders.

In conclusion, short-term insurance serves as a temporary solution for individuals without health insurance coverage, offering less comprehensive coverage than standard plans. It’s important to carefully evaluate options and ensure that a chosen plan aligns with personal needs and budget. Pivot Health is recommended for short-term insurance due to its prescription drug discounts and value options, while Everest offers Flex Term Health Insurance with an open physician network and coverage benefits of up to $1.5 million with low waiting periods. United Healthcare provides a three-year renewal option for extended short-term coverage.