Why consider short-term cover?
The
US market tends to rely on employers to absorb the cost of health insurance for
all those in the workforce. In the better packages, the cover extends to the
immediate family and may include dental as well as medical care. As a business
expense, the cost is passed on to the customers or clients in higher retail
prices. Nothing in life is free. But if you cannot find a job with health cover
or you lose your job, this forces you into the private market. Note that COBRA
gives some protection if you do lose the benefit of an employment package.
The choices to be made in private health insurance are actually very simple.
When young, many people in good health decide to take the risk and live life
without medical insurance. If there is an accident or you are injured by
someone else, auto insurance may cover the cost of treatment. There may be
legal remedies to recover the medical expenses. If all else fails, there are
always credit cards and the family to fall back on. The commitment of a high
percentage of starting pay to health insurance premiums does not look
attractive in comparison to a good social life.
There are two reasons why this reluctance to take out a full policy may
backfire. The private health insurance market puts up real barriers to those
with a pre-existing condition. At an extreme, insurance will be refused to
those diagnosed with life-threatening diseases where the costs of short- or
long-term medical care may be high. In the majority of cases access to medical
care may be delayed and then limited. The only way to get round this problem is
to have a policy in place before you are diagnosed with serious health
problems. Note that short-term insurance also excludes pre-existing conditions.
You cannot wait until you fall ill and then plan to meet the costs by taking
out a short-term policy.
The second reason for opting into a regular private health plan is to earn
discounts over the longer term. When you are young, the chances of falling ill
are low and the premiums reflect this. If you maintain your policy, you will
earn loyalty discounts and the premiums reflect what you have paid into the
plan but not claimed. Short-term policies are priced "as is". Each
new policy takes your age and medical profile into account so, the older you
are, the greater the risk of a claim and the higher the premium.
Of course, you may be forced into buying short-term policies because it is all
you can afford. This means high deductibles and limited cover until your family
finances will cover a long-term plan. Using this site will help you find the
cheapest possible short-term policies.