Posts Tagged ‘interim health insurance’

Interim Health Insurance – Keeping you covered

Wednesday, January 21st, 2009
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You or someone you know will likely at some point in their life be between jobs or going through a divorce. For what ever reason it can happen to anybody. During this short time you may lose your health insurance coverage. This is when interim health insurance comes in handy.

Interim health insurance gives you health insurance coverage until you have permanent coverage. You may opt for 1 month or 6 months. No matter, most insurance companies will allow you to extend your coverage if you need.

The type of interim health insurance you can find varies from one insurance company to another. Your best bet is to shop online and compare the plans. Most of these plans are going to be pretty cut and dry. This type of health insurance tends to be no frills.

Typically, it will cover hospital cost, emergency care, prescriptions, labs & x-ray. Most plans have a deductible to meet and then coverage begins. Most of these plans do not allow for preventative or routine exams. And they do not cover any pre existing conditions.

These plans are exempt from HIPPA legislation. What this means for the buyer is that the insurer does not have to guarantee renewal or guarantee issue. If you have been diagnosed or treated for a condition in the past 5 years or so, you can almost guarantee this type of insurance will not cover that condition.

This type of insurance tends to be very low cost. Rates can range from $30 – $150, depending on what you are looking for. The higher the deductible the less you will pay in premium. Since these plans are only short term, many consumers find it easier to take a risk by opting for a high deductible plan to save some money.

Here is an example of how the plan works. Jenny purchased a plan for $55. The plan has a $5000 deductible and 80/20 co insurance, with a $7000 total out of pocket max. Jenny had to be admitted for a infection she developed in an open wound. Once released the total bill came to $25000. Jenny would have to pay the $5000 deductible, leaving $20000. Of that $20000 she would be responsible for 20% Since that is $4000, Jenny would only need to pay $2000 reaching her out of pocket max. So Jenny pays $7000 and the insurer will pay $18,000.

To many people especially young healthy people go without insurance during these times. As you can see by Jenny, who happen to be a healthy 23 year old, one trip to the hospital can be very expensive. It makes more sense to be out $7000, rather then $25000.  Instead of financial disasastor opt for interim health insurance.