Residents Of Arizona Enjoy Short Term Health Insurance Benefits For Longer Period

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To provide health coverage to the uninsured for a limited period, short-term health insurance plans were designed by the health insurance marketplace. Though not every state offers a short-term plan but Arizona offers short term plan for the initial period of up to 364 days that can be renewed for up to 3 years. Short-term plans are less expensive, as these plans don't have as many benefits as ACA-compliant health plans. ACA plans provide certain benefits like maternity care. Short-term plans don't have minimum requirements as they don't have to follow the rules of the ACA as they may not cover maternity care, prescriptions, and mental health care.

Distinguish Features of Short Term Plans

Short-term health insurance is an affordable solution for individuals who need temporary coverage. It is easy to enroll in a short-term plan as individuals can apply at any time during the year. Short-term plans are available for as little as three months to as long as 364 days that can be renewed for up to three years in some states like Arizona. Due to the legislative changes in Arizona, residents of this state ...
... can enjoy the benefits of a short-term plan for an extended period and they can also renew the policy for up to three years period. While health insurance plans in Arizona don't have all the benefits and features of ACA plans but these plans do provide some coverage. With some coverage in place, individuals will receive some benefit on facing a significant hospital or doctor bill. The short-term plans help to fill the gap while individuals are waiting for access to a more comprehensive plan. Short-term health insurance plans provide coverage for hospital stays, some other serious medical situations, and also cover preventive care.

Who Needs Short Term Health Insurance?

While short-term health plans do come with limitations but these plans provide health coverage options to individuals who can’t afford major health plans or who don’t have access to comprehensive plans. Short term health plans are ideally suited for the following individuals:

- Waiting for the Medicare to start in two three months
- Waiting for the health insurance benefits of their new job
- Missed the open enrollment period and are not entitled to a special enrollment period
- No longer eligible for receiving coverage under their parent’s health insurance after 26 years of age
- Resigned from the job and waiting for the new job to start.
- Healthy individuals looking for affordable health insurance options

Vital Points Related to Short Term Health Plans

- Short-term health plans come with a deductible which is the amount individuals pay out-of-pocket before the start of the coverage. Short-term plans with a higher deductible have lower premiums and individuals need to know that higher deductible means more out-of-pocket costs and so it may be better for individuals to pay a higher premium rather than a higher deductible.

- While shopping for short-term health plans individuals need to keep in mind that higher deductibles lead to more out-of-pocket costs thus it will be beneficial for them to pick short-term plans with a higher premium because then they will not have much to pay out-of-pocket. Thus, depending upon their health and financial situation individuals should pick a short-term plan.

- Short-term health plans also have copays and coinsurance like major health insurance plans. Coinsurance is a certain percentage that individuals pay for a covered service like for example a short-term plan may have a 20% copay for a hospital stay or a plan may have a copay of $500 for an emergency room visit.

- Short-term health insurance plans also have lifetime and annual limits. The annual limit in a short-term plan is the maximum amount that the plan will pay in a given year and the lifetime limit is the maximum amount that the plan will pay in the entire policy duration.

Summary - In the changing health insurance landscape, short-term is another temporary health insurance option that is gaining popularity among the residents of Arizona. Short-term plans available in Arizona have relatively lower premiums compared to ACA-compliant plans; have a quick turnaround time for approval and policyholders can set coverage for a specific time.

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