Short Term Medical Plans Vs. Major Medical Plans

Short Term Medical Plans Vs. Major Medical Plans

We often get calls from people that have questions about short term medical plans. What do they do? When are they useful? How are they different from Major Medical Plans?

Major Differences:

  • Short Term Medical plans need to be renewed every 3 months while Major Medical plans need to be renewed every year.
  • Short Term Medical plans do NOT cover preexisting conditions while Major Medical plans do cover preexisting conditions
  • Short Term Medical plans do NOT cover normal doctor visits or wellness checkups while Major Medical plans do cover normal doctor visits and wellness checkups.
  • Short Term Medical plans do NOT exempt you from the individual mandate while Major medical plans do exempt you from the individual mandate. (Note the individual mandate is being eliminated in 2019).

Pros of Short Term Plans:

  • Short Term plans are cheaper than Major Medical plans.
  • Short Term plans can be applied for at any time unlike Major Medical plans which have restrictions on when you can apply. Short Term plans can also be effective next day! Many of our clients use Short Term plans to “bridge the gap” until they can get on a different type of health insurance plan.
  • Short Term plans are effective for “emergency” health insurance coverage.
  • Short Term plans satisfy many non-government insurance requirements (such as to get into certain schools).

If you want to know more about Short Term plans give us a call. We will help you figure out if a Short Term plan is the best fit for your situation.

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