659,000 people lost health insurance in Texas between February and May 2020. That signifies a 15% increase since 2018. Reasons for this are due to the economic effects of COVID-19 and job loss.
If you’re one of the affected, you may be on the search for a health insurance replacement. When you are in need of health insurance coverage, it can be a daunting task to find the right plan for you and your family. Did you know there are temporary health insurance coverage options in Texas that can help?
What Is Temporary Health Insurance?
Temporary health insurance is a type of health insurance that you can use for a short period of time. It is usually cheaper than other types of health insurance, and it can be a good option if you are between jobs or if you are waiting for your regular health insurance to start.
What Is the Difference Between Temporary and Regular Insurance?
The main difference between temporary and regular health insurance is the length of the coverage period. Temporary health insurance plans typically last for 3-6 months, while regular health insurance plans usually last for one year.
Another difference is that temporary health insurance plans often have lower premiums than regular health insurance plans. This is because they generally have higher deductibles and co-pays, and they do not cover as many services.
Here are some considerations to keep in mind if you are thinking about getting temporary health insurance.
1. What Is the Policy Coverage Area?
Temporary health insurance plans usually have a limited coverage area. This means that they might not cover providers outside of your state or country. If you plan on traveling, you will want to make sure that your temporary health insurance plan will cover you while you are away.
2. What Is the Policy’s Deductible?
The deductible is the amount of money that you have to pay before your insurance company starts to pay for your medical expenses. Most temporary health insurance plans have high deductibles, which can be a problem if you get sick or injured and need to see a doctor right away.
3. What Is the Policy Co-payment?
A co-payment is the amount of money that you have to pay each time you see a doctor or get a prescription filled. Most temporary health insurance plans have high co-payments, which can be a problem if you need to see a doctor often.
4. What Is the Policy’s Maximum Benefit?
The maximum benefit is the most money that your insurance company will pay for your medical expenses. Most temporary health insurance plans have low maximum benefits, which can be a problem if you have a lot of medical expenses.
5. What Is the Policy’s Pre-existing Condition Exclusion?
Almost all temporary health insurance plans do not cover preexisting medical conditions. This means that if you have a condition that was treated or diagnosed before you got the policy, your insurance company will not pay for your treatment.
6. What Is the Cancellation Policy?
Some temporary health insurance plans can be canceled at any time. Others have a waiting period, which means that you have to keep the policy for a certain amount of time before you can cancel it. Make sure you understand the cancellation policy before you buy a temporary health insurance policy.
7. What Is the Renewal Policy?
Some temporary health insurance plans can be renewed, but others cannot. If you think you might need to keep your policy for longer than the initial term, make sure you choose a plan that can be renewed.
8. What Is the Policy Cost?
Temporary health insurance plans vary in price, but they are generally cheaper than other types of health insurance. The exact cost will depend on factors such as your age, your location, and the coverage you choose.
9. How Long Does the Policy Last?
Most temporary health insurance plans last for six months to one year. Some plans can be extended for longer periods of time, but they will usually cost more.
10. Is There a Cancellation Fee?
Some temporary health insurance plans have a cancellation fee, which is a charge you have to pay if you cancel your policy before the end of the term. Make sure you understand the cancellation fee before you buy a policy.
11. Are Premiums Tax-Deductible?
Temporary health insurance premiums are not tax-deductible. This is different from regular health insurance, which allows you to deduct your premiums on your taxes.
12. How Do I File a Claim?
If you need to file a claim, you will usually have to do it online or by phone. Make sure you understand the process before you buy a policy.
13. What Are the Exclusions?
Most temporary health insurance plans have exclusions, which are things that are not covered by the policy. Make sure you understand the exclusions before you buy a policy.
14. What Is The Appeals Process?
The appeals process is the way you can challenge a decision made by your insurance company. Most temporary health insurance plans have a very limited appeals process, so make sure you understand it before you buy a policy.
15. What Does It Cover?
Temporary health insurance plans typically cover doctor visits, hospital stays, prescription drugs, and some preventive care. However, they generally do not cover pre-existing medical conditions, routine physicals, or dental care.
Benefits of Short-Term Health Insurance
One of the benefits of cheap health insurance is that it is flexible. You can choose the length of time you want to be covered, and you can cancel your policy at any time.
It is also cheaper than other types of health insurance. This is because it does not typically cover pre-existing medical conditions or routine physicals.
Short-term insurance covers some preventive care, although it does not cover everything. This can help you avoid costly medical bills in the future.
If you are between jobs or waiting for your regular health insurance to start, this insurance can help you fill the gap. This way, you will not have to worry about being without coverage.
Short-term health insurance plans are generally easy to sign up for. You can usually do it online or by phone. Because there are so many different short-term health insurance plans available, you can compare them easily to find the one that is right for you.
Short-term plans are portable. If you move to a new state, you can usually keep your health insurance plan. This is not the case with regular health insurance, which is often specific to one state.
Most short-term health insurance plans do not require a medical exam. This means you can get coverage even if you have a pre-existing medical condition. These plans usually take effect within a few days.
This is much faster than regular health insurance, which can take up to six weeks to start. Plus, there are no lifetime limits. This means that you can keep your policy for as long as you need it.
Risks of Temporary Health Insurance Coverage
Well, first, it does not cover everything. This includes pre-existing medical conditions, routine physicals, and dental care. It also has a limited network of providers.
This means you may not be able to see the doctor you want or get the prescriptions you need. The benefits may be less than other types of health insurance, too, since it does not cover pre-existing medical conditions or routine physicals.
Short-term health insurance is not available in all states. This means you may not be able to get the coverage you need. Some short-term health insurance options have a high deductible and higher premiums. This means you will have to pay more out of pocket for your medical care.
Another drawback of temporary health insurance is that it often does not cover maternity care or mental health care.
What Temporary Health Insurance Covers
Temporary health insurance can cover doctor visits, hospital stays, prescription drugs, and some preventive care. However, they generally do not cover pre-existing medical conditions or routine physicals.
Short-term plans may also cover:
- Emergency room visits
- Ambulance services
- X-rays and laboratory tests
Types of Short-Term Health Insurance Plans
There are two types of short-term health insurance plans available. Which one you choose depends on your needs.
The first type of short-term health insurance is an indemnity plan. Indemnity plans, often called fee-for-service plans, give you the option to visit any doctor or hospital that accepts the plan. You will usually pay a deductible and a coinsurance for covered services. This type of plan reimburses you for medical expenses.
The second is managed care plans. There are three types of managed care plans Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point-of-Service (POS) plans.
With an HMO, you will use doctors and hospitals that belong to the plan. With a PPO, you can visit any doctor or hospital, but you will save money if you use in-network providers. A POS plan is a combination of an HMO and a PPO.
Top Texas Insurance Providers
If you’re looking for short-term health insurance in Texas, you have a few different options. The top insurers in the state are:
- Blue Cross and Blue Shield of Texas
These are all national companies that offer a variety of health insurance plans in Texas. You can also find smaller, regional insurers that may offer lower prices or more unique coverage options. To get the best deal on health insurance, it’s important to compare quotes from multiple insurers.
When you’re comparing health insurance plans, there are a few things you’ll want to keep in mind:
- What is your budget?
- What are your health needs?
- What is your preferred doctor or hospital?
- Do you need prescription drug coverage?
- Do you need vision or dental coverage?
- Are you looking for a short-term or long-term plan?
Once you know what you’re looking for, you can start comparing health insurance quotes to find the best plan for your needs.
How to Get Help Paying for Health Insurance in Texas
There are a few programs in Texas that can help low-income residents pay for health insurance. The Medicaid program provides free or low-cost health insurance to low-income adults, children, pregnant women, people with disabilities, and the elderly. The Children’s Health Insurance Program (CHIP) provides free or low-cost health insurance to children who do not qualify for Medicaid.
The Texas Health Care Opportunity Program (THCOP) helps low-income residents pay for private health insurance. The Affordable Care Act’s premium tax credits and cost-sharing subsidies can help eligible Texans afford health insurance purchased through the Health Insurance Marketplace.
The HIPP program also provides help to pay for health insurance premiums and other out-of-pocket costs for low-income adults who are eligible for Medicaid.
To learn more about these assistance programs and how to apply for them, visit www.healthcare.gov or www.yourtexasbenefits.com. You can also contact your local Department of Health and Human Services office or the Texas Health and Human Services Commission.
Shop for Temporary Health Insurance Plans
There are a few things to keep in mind when considering short-term health insurance in Texas. Most importantly, make sure you understand the risks and benefits of this type of coverage. Short-term health insurance can be a great option for healthy individuals who need affordable health insurance coverage, but it’s not right for everyone.
Be sure to compare quotes from multiple insurers to find the best plan for your needs. Start by getting instant quotes here. You’ll be able to quickly compare rates and find the plan for you.