Short term medical insurance for special situations

by Tony Novak, MBA, MT, OnlineAdviser at Freedom Benefits, last updated on 12/1/2011

Short term medical insurance is available to most, but not all, applicants throughout the United States. Any available plan will provide basic protection for most situations and the coverage is comparable between the plans offered. But in some special cases it helps to focus on one specific type or brand of health insurance plan.

Medical Screening

None of these short term medical insurance plans are appropriate or available if you have a recent history of serious illness, insulin-dependent diabetes, cancer, HIV or are pregnant. None of these plans cover the cost of treating pre-existing medical conditions. See the state assigned risk plan available through the Blue Cross / Blue Shield Association or your state' s insurance department. Also consider the Basic Health Insurance plan that accepts all applicants under age 70. Links to all are available on each state page at Freedom Benefits.

State of Residence

Massachusetts, New Jersey, New York, Vermont residents do not use short-term medical insurance. Just use the regular individual health insurance plans for a shorter coverage period. Unfortunately these plans are more expensive than the short-term medical insurance plans. A few states have only available short-term medical plan: New Hampshire and Washington state residents should always use the Secure STM plan. Rhode Island residents should use the these plans.

Non-US citizens

Long term visitors, students and workers on a H-1 visa should use the Freedom Benefits plan because it does not require citizenship.

Previously declined for coverage

Applicants who have previously been declined for health insurance plan under any other plans are not eligible for most individual health insurance plans. The exception is Celtic plan that does not ask about previous declines. The TIG Select only restricts applicants who have been declined in the past 12 months. Also consider the Core Health Insurance plan that accepts all applicants under age 70.

Diabetics

Short term major medical insurance is not available to diabetics. Use Core Health Insurance instead.

High blood pressure or cholesterol

The Clarendon Freedom and TIG Select plan do not ask about high blood pressure or lab tests.

Overweight

Avoid the Assurant plan if you are a male over 300 pounds or a female over 250 pounds, but none of the other short term medical insurance plans ask about weight or build on the application form.

Already Taking Prescription Drugs

Some plans include a discount drug card that can be used with pre-existing medical conditions or current prescriptions. These cards do not cover the whole bill but typically save 20% to 25% of the cash price.

Need immediate ID card

Several plans offer the ability to print an ID card and policy online immediately after enrollment. These include Assurant, TIG Select, and Clarendon Freedom plan. By special request and with an additional charge, the policy and ID card for an Assurant can be sent via overnight delivery but only if you apply by fax.

Coverage in another Country

Most short-term medical insurance plans provide coverage only in North America. The IMG or HPA international plans provide coverage overseas and handle any required foreign language transcription requirements and foreign currency transactions.

Tony Novak is a member of the Pennsylvania Institute of Certified Public Accountants, the New Jersey Society of Certified Public Accountants and an accredited member of the Better Business Bureau.

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