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Temporary Health Insurance Plans

Temporary health insurance plans are designed to fill the gap between the end of one permanent health insurance plan and the beginning of another. Temporary plans are useful for new college graduates who are waiting for employer-based coverage to begin or for anyone temporarily without health insurance coverage. Temporary plans vary widely.

  1. About

    • Most temporary health insurance plans don't cover preexisting conditions and are generally available only to people under the age of 65. You can buy temporary plans that offer coverage for anywhere from one to 12 months. Although you can purchase a policy on a month-to-month basis, the policies are generally nonrenewable and you have to reapply for coverage each month. The insurance company does not have to renew the policy -- and probably won't if you get sick.

    Premiums

    • According to eHealthInsurance, most temporary health insurance costs between $25 and $100 a month. Premiums are low because coinsurance, or the amount you pay for treatments, may be between 20 and 50 percent. Also, deductibles are between $250 and $2,500, and most policies do not cover preventive care, physicals, immunizations, dental or vision care.

    Preexisting Conditions

    • If you cannot get temporary health insurance because of a preexisting condition and have been uninsured at least six months, look into the Pre-Existing Condition Insurance Plan (PCIP) created by the Affordable Care Act in March 2010. PCIP offers an alternative for people with preexisting conditions denied health insurance. To learn how to apply for PCIP, visit healthcare.gov.

    Credible Coverage

    • If you are going directly from another health insurance plan to temporary health insurance, make sure the temporary plan lets you maintain "credible insurance coverage" under the Health Insurance Portability and Accountability Act (HIPAA). As long as you have credible coverage, another permanent insurance plan that you move to cannot exclude preexisting conditions from coverage. Credible coverage ends if you go more than 63 days without health insurance.

    Considerations

    • Temporary health insurance is not available in all states. Locations where these policies are not available may offer other options for the temporarily uninsured.

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