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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

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Short term health insurance

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: I looked up the cost of short term health insurance and it was way more than I thought. I am 46, live in Philadelphia. The policies showed $395 a month for a $250 deductible. Why do you say this is less expensive than other insurance?

A: First of all, almost no one buys any major medical insurance policy with a $250 deductible anymore. The most common choice of deductible is $1,000. If you compare that rate with the cost of a comparable $1000 deductible Blue Cross/Blue Shield policy in your area you will find that the short term health insurance is les than $200 per month while the Blue Cross is well over $400 per month. As a rue of thumb, short term health insurance is priced at 1/3 the price of comparable renewable insurance for younger adults and 1/2 the price for middle aged applicants. Secondly, you should compare the rates of several of the short term health insurance plans at The prices vary considerably from one policy to the next and it is difficult to predict who will have the best offer in your specific case. Secure STM, for example, tends to be priced lowed for applicants in their 40s. You may also wish to see the short article "Six Ways to Get More From Short Term Medical Insurance".


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