Should I Consider a Short-Term Health Plan?

Historically, we are not fans of short-term health plans. They are often sold as complete health insurance options but have significant limitations for pre-existing conditions as well as other standard coverages such as mental health, maternity, and other important elements of protection. They also exclude all health conditions that were diagnosed or treated during the policy period when you renew a new plan, which is why the cost is greatly reduced compared to a standard group or individual medical plan.

However, during the recent coronavirus pandemic, we have come to appreciate the value of an immediate short-term option for people that expect to get back on their group plan in a short period of time and have lost their income, as keeping expenses to a minimum while still having some protection is imperative. There are many other options to consider such as COBRA, State Continuation Benefits, and ACA Exchange alternatives that provide subsidies to assist in the cost. Short-term is still not our recommended course of action from a coverage perspective, but in the narrow case of needing immediate benefits with very limited financial resources, they can provide a very limited alternative that is viable for some individuals and families.