Insurance Gap: Covering A Month-Long Gap

There are a few ways to bridge an insurance gap of one month. You could consider a short-term health insurance plan, which typically lasts between one month and one year. These plans are a good option for those who are healthy and do not require regular health services or prescriptions. They are also a good option for those who need immediate coverage. However, short-term plans do not cover pre-existing conditions and are not available in all states. Another option is COBRA insurance, which allows you to continue your previous employer's health plan for a limited time. This option can be expensive, but it covers pre-existing conditions. A third option is an Affordable Care Act (ACA) plan, which covers pre-existing conditions and essential health services. These plans are available to anyone who is not yet eligible for Medicare.

Short-term health insurance plans

Short-term health insurance is not regulated by the Affordable Care Act (ACA) and does not cover pre-existing conditions. It is designed to cover at least some of the costs of unexpected medical events that are not linked to pre-existing conditions. The plans generally provide coverage for inpatient and emergency care, surgeries, and various outpatient services, lab work, and imaging. Some short-term plans also include inpatient prescription drugs, although it is less common for them to cover prescriptions that you can pick up at the pharmacy.

Short-term health insurance is an affordable option if other plans are too expensive or unavailable. The monthly premiums vary depending on your age, location, and the insurance company offering the coverage. They can start at well under $100/month and are considerably less expensive than ACA-compliant major medical plans if you are not eligible for a premium subsidy.

It is important to note that short-term health insurance is not considered minimum essential coverage under the ACA. This means that if you purchase a short-term plan and then suffer a serious illness or injury, you may not be able to purchase another short-term plan when yours expires. Additionally, the termination of a short-term plan does not trigger a special enrollment period for an ACA-compliant individual market plan.

COBRA insurance

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows workers and their families to continue their employer-provided health insurance after specific life events, such as job loss or reduced work hours, for a limited time. This means that, under COBRA, you can generally continue your employer-sponsored health insurance for 18 to 36 months.

COBRA is a good option for those who want to maintain their current health plan without exclusions or pre-existing condition limitations. It is also a good option for those who want to continue seeing the same doctors and receiving the same health plan benefits.

To be eligible for COBRA, the business you work for must have had 20 or more employees in the previous year. You will be notified within 45 days of losing your coverage if you are eligible and you will then have 60 days to respond to the election notice and apply for COBRA.

The cost of COBRA coverage can range from $400 to $800 per month, per individual. This is generally more expensive than what you were paying while employed as your employer likely subsidised part of the cost. Under COBRA, you may be required to pay the entire premium for coverage, up to 102% of the cost to the plan.

Affordable Care Act plans

If you're facing a gap in your health insurance coverage, there are a few options to consider. One option is to explore Affordable Care Act (ACA) plans in the Health Insurance Marketplace. ACA plans offer a range of benefits and can be a good option if you're looking for comprehensive coverage. Here are some things to know about ACA plans:

• ACA plans are available on the Health Insurance Marketplace, also known as the exchange. You can compare and choose from a variety of ACA-compliant plans offered by different insurance companies.
• ACA plans cover essential health benefits, including mental health services, prescription drugs, maternity and newborn care, and more. These benefits are standardized, so you can easily compare plans and choose one that meets your needs.
• ACA plans are guaranteed issue, which means insurance companies cannot deny you coverage based on your health history. This is especially important if you have pre-existing conditions that need to be covered.
• Financial assistance is available for eligible individuals and families in the form of Advanced Premium Tax Credits (APTC) and Cost Sharing Reduction (CSR) benefits. APTCs are refundable tax credits that lower your monthly premium payments, while CSRs help with out-of-pocket expenses like deductibles, coinsurance, and copayments.
• The Marketplace will determine your eligibility for Medicaid or other government-sponsored health programs, as well as your eligibility for premium and cost-sharing assistance.
• ACA plans are typically more expensive than short-term plans, but they offer more comprehensive coverage and include benefits like preventive care and prescription drug coverage.
• You can enroll in an ACA plan during the Open Enrollment Period, which usually takes place towards the end of the year. However, if you experience certain qualifying life events, such as losing your current coverage, you may be eligible for a Special Enrollment Period to sign up outside of the regular Open Enrollment Period.

When considering an ACA plan to bridge a one-month insurance gap, it's important to review the plan details, understand the costs and benefits, and ensure that the plan meets your specific needs.

Accident-only coverage

The cost of accident-only coverage can vary depending on age, location, and other factors. Some providers offer plans starting at around $44 per month, while others provide coverage for as little as $85 per month. It is worth noting that short-term health insurance plans, including accident-only coverage, may have limited benefits and potential exclusions. Therefore, it is essential to carefully review the terms and conditions of the policy before purchasing.

When considering accident-only coverage to bridge a one-month insurance gap, it is important to review the available options and choose a plan that best suits your needs and budget. This type of coverage can provide a safety net during the gap and ensure that you are protected in the event of an accident.

In summary, accident-only coverage is a short-term health insurance option that can help bridge a one-month insurance gap by providing affordable coverage for new injuries or accidents. It is important to review the terms and conditions, as well as the cost, before purchasing this type of plan to ensure it meets your specific needs.

Private insurance

Short-term health insurance is not subject to the same regulations as Affordable Care Act (ACA) plans and, therefore, does not cover pre-existing conditions. It also does not usually cover maternity care, mental health, or preventive care. Short-term health insurance is intended to cover emergency hospital visits and certain prescription medications.

Short-term health insurance is available for up to three years in some states, with a maximum of 364 days per plan. However, a federal rule taking effect on September 1, 2024, will limit short-term plans to a total duration of four months, including renewals.

When considering short-term health insurance, it is important to note that it is not a replacement for traditional major medical coverage. Short-term plans often have very high deductibles, and the monthly premium costs can add up over time.

To obtain private short-term health insurance, you can contact your local health insurance agent, trade or professional associations, or "private exchanges" that offer plans from multiple carriers. You can also purchase short-term health insurance directly from an insurance company's website.

Frequently asked questions