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Shopping for Temporary Health Insurance

Shopping for health insurance, including temporary coverage, is easy. You have the option of shopping online, going to a website that allows you to obtain quotes from multiple carriers or going directly to the website of the insurance company for quotes. If you prefer to use an insurance agent, the agent will work with you to locate temporary plans, obtain quotes and guide you through the application process.

  1. What is Temporary Health Insurance?

    • A temporary health insurance policy is coverage purchased for a period of one month to one year. Policies are typically for individuals and families between jobs and students that do not have other options such as COBRA or Medicaid. If you plan to get health insurance through an employer within 12 months, a temporary plan until then is appropriate. If you are self-employed or do not have an employer-sponsored option, you want to consider individual insurance instead. Temporary policies tend to cover only hospitalization and emergency care costs rather than routine doctor visits and preventive care of individual or group plans.

    Finding Temporary Health Insurance

    • Finding a suitable and affordable temporary health insurance plan is not difficult. Visiting a website (see Resources) allows you to shop for multiple temporary policies. After inputting basic information including your birth date, desired coverage length, gender and a few other answers, the site will search for temporary health insurance options for you. The available plans will display onscreen so you can compare them.

    National Carriers

    • Several national health insurance carriers offer short-term health insurance policies. You complete a brief questionnaire to obtain quotes. You can also call each carrier and speak to a representative who will ask you questions and provide a quote and allow you to submit an application. Unlike individual and group insurance, temporary coverage is often granted as soon as the next day.

    Comparing Temporary Health Plans

    • When shopping for temporary health insurance, compare several areas. Compare available coverage time periods and if you can get a discount by prepaying for several months. Look at the deductible amounts--the amount you pay out-of-pocket before the plan pay--offered by each temporary plan. Typical deductibles range from $250 to $5,000. Coinsurance--the percentage of shared costs between you and the health plan--is another out-of-pocket cost that may be different from plan to plan. Many temporary health plans have an 80/20 coinsurance which means the plan pays for 80 percent of the costs and you pay for 20 percent, but some plans are higher or lower.

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