Temporary
health insurance coverage is designed to fill the gap between
a more traditional health insurance policy and the next one
the insured is able to obtain.
Lapses in health insurance coverage happen for a variety of
reasons such as the loss of a job, graduation from college or
a divorce. It also fills the insurance needs of healthy people
who prefer not to pay premiums on a more comprehensive policy
and who desire to limit their expenses in the event of a catastrophic
illness or accident.
Many of the well-known health insurance providers offer temporary
health insurance coverage along with providers who are lesser
known or specialize only in temporary policies. Providers generally
offer deductibles that start at around $500 and may go as high
as $2,500 or more.
Depending on the policy the provider will usually cover 70%
or 80% of the expenses until the cap is reached. The cap is
the amount at which the company then begins covering the medical
bills at 100%. |
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| The
insured picks up the costs of the deductible and the percentage
of medical bills not covered until the cap level is reached.
The goal of having this type of coverage is to prevent an ongoing
medical problem from draining an insured’s financial resources.
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The value of this type of stop-gap insurance is manifold.
Many times a person who has been laid off cannot afford
to continue his employer-provided health insurance and
needs something to protect him from a potential medical
problem that would bankrupt his family.
Others who benefit greatly are employed people who are
not offered health coverage at work. College students
who are not covered under their parents’ policies should
always have this type of policy in case the unforeseeable
happens to an otherwise healthy young person.
Temporary
health insurance coverage has limitations as well as
benefits. Many of the features insured people take for
granted such as nonessential doctor’s office visits
and covered prescriptions are not available under temporary
policies. |
| The
benefits are found in the prices. These policies are inexpensive,
usually purchased on a month-by-month basis and provide
invaluable coverage at a fraction of the cost of traditional
health insurance. |
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