Louisiana residents can get health insurance coverage at a reduced cost with short term health insurance.
There are many situations that can place us in financial peril, such as a sudden illness or an accident, and for this reason, we must take measures to protect our savings or income. This is where short term health insurance comes in.
Understanding Short Term Health Insurance
Short term health insurance is also known as temporary health insurance and only offers health care coverage for a limited amount of time. In fact, these plans usually only have a validity period of around 1 month to 12 months, depending on the plan you avail. The important thing to remember about short term health insurance plans is that they are not intended to replace standard individual or group health insurance coverage, and are useful for only a few cases. This kind of health insurance plan is not for everyone, no matter how great it is at preventing risk.
When Short Term Health Insurance Makes Sense
This type of health insurance coverage is ideal if you:
- are in between jobs
- do not have any pre-existing conditions
- are on a tight budget
- are temporarily or seasonally employed
- are waiting for employer benefits
- are waiting for the next open enrollment period
Limitations and Exclusions
Short term health insurance plans are known to exclude pre-existing medical conditions from coverage. While the definition of a pre-existing condition may vary from state to state, this type of medical insurance plan typically excludes conditions that have been diagnosed or treated within the previous 3 to 5 years. If you are someone who needs coverage for pre-existing conditions, then you should seriously consider COBRA or a major health insurance plan that meets the Minimum Essential Coverage requirements.
In addition, since short term health insurance plans do not meet Minimum Essential Coverage requirements, you may be required to pay a tax penalty depending on your income level and the plan cost.
Availing of a Louisiana short term health insurance plan will disqualify you for any guaranteed issue individual health plans, commonly referred to as HIPAA plans, which are generally designed for people with pre-existing conditions who would have difficulty getting health insurance otherwise. It is important to note that you should consult a benefits advisor prior to making any final decisions in order to further discuss your rights under the Health Insurance Portability and Accountability Act (HIPAA) and other rights under Louisiana state law.
Another important factor to consider is that you won’t necessarily be able to sign up for an Affordable Care Act plan immediately after the short term health plan expires. Additionally, these plans are not renewable, which means you will need to enroll a new short term plan. The term limitations vary by state, so you have to carefully research all aspects of a plan before signing up for one.
There are now numerous top leading insurance carriers that offer short term health insurance plans to Louisiana residents. Carefully consider all your options, and if you believe that this type of health care coverage is ideal for you, compare carriers and plans before choosing one that best meets your health care needs.