Short Term Health Insurance

Short Term Health Insurance Overview
Long Term Consumer Care, Inc. - February 2007

Learn what it is, how it works and the difference between each plan...

Short term health insurance is temporary medical coverage that is designed to keep you from financial ruin if you become ill, have an accident or injury. Coverage can begin as early as tomorrow and you can use any doctor or hospital.

Out of Pocket Expenses - Since the coverage for each plan is very similar, you should consider how much you will need to pay if you have a covered major medical event. First you choose a deductible ranging from $250 all the way up to $5,000. If you were to become ill, have an accident or injury, the first thing you would pay is your deductible. After you satisfy your one time deductible, the co-insurance starts to pay. The co-insurance is where you pay a percentage of the remaining medical claim and the insurance pays a percentage. This is called the rate of payment and is expressed as 80/20 or 50/50. After this, the insurance company pays 100% up to the policy limits

Example of how the Liberty Select plan pays a medical claim

The Liberty Select plan pays benefits for each covered person in the following manner:

First - You meet your deductible. Choose from: $250, $500, $1,000, $2,500 or $5,000.

Next - Liberty Select pays 80% or 50% of the next $5,000 of covered expenses. This is called 80/20 or 50/50 co-insurance (The $5,000 is called the co-insurance limit).

After This - Liberty Select pays 100% of covered expenses up to your coverage period maximum of $2,00,000 per covered person.

Co-insurance Limits Vary by Plan - The higher the co-insurance limit is, the more you will be paying out of pocket if your medical claims exceed your deductible. Below is a table of co-insurance limits for the most popular short term plans.

Short Tem Plan Name	Co-Insurance Limit	Co-Insurance Limit
Insurance Company	6 Month Plan	12 Month Plan
Liberty Select / Standard Security	80/20 or 50/50 to $5,000	80/20 or 50/50 to $5,000
Assurant Health / Time Insurance	80/20 or 50/50 to $10,000	80/20 or 50/50 to $25,000
Secure Lite STM / Standard Security	80/20 or 50/50 to $10,000	Only 6 Month Plan Available
Secure STM / Standard Security	80/20 or 50/50 to $5,000	80/20 or 50/50 to $5,000
American Health Shield / FSG	80/20 or 50/50 to $5,000	80/20 or 50/50 to $5,000

Use and Doctor or Hospital - Short term health insurance gives you the freedom to use any doctor or hospital. This type of insurance does not cover routine wellness exams, pregnancy or pre-existing medical conditions. In general terms, under a short term plan - You are covered if you become ill, have an accident or injury. Most plans can be paid for on a monthly basis and kept for up to 6 or 12 months depending on the state you live in. You might also receive a discount if you pay for your entire length of coverage up front. Most plans provide up to $2,000,000 in coverage.

Short Term Health Insurance Plan Comparison

Liberty Select STM - Underwritten by Standard Security Life Insurance Company of NY (Rated A Excellent by AM Best) Coverage from 30 days up to 6 or 12 months. $2,000,000 in coverage per person. Deductible options: $250, $500, $1,000, $2,500, $5,000. Print your policy online Usually the lowest priced plan. Lowest out of pocket expense. Most popular plan.

Assurant Health - Underwritten by Time Insurance (Rated A- Excellent by AM Best) Coverage from 30 days up to 6 or 12 months. $2,000,000 in coverage per person for the 6 month plan and $1,000,000 with the 12 month plan. Deductible options: $250, $500, $1,000, $2,500. Single Pay Discounts of 20-30%. Includes Rx coverage. Optional Accident Medical Expense (AME). Option to Print your policy after you apply.

Secure Lite STM - Underwritten by Standard Security (Rated A Excellent by AM Best) Coverage from 30 days up to 6 months. $750,000 in coverage per person. Deductible options: $50, $500, $1,000, $2,000, $5,000. Includes UCSA Benefits Plan. Limited Medical Plan

American Health Shield - Underwritten by FSG - Fairmont Specialty Group (Rated A- Excellent by AM Best) Coverage from 30 days up to 6 or 12 months. $2,000,000 in coverage per certificate. Deductible options: $250, $500, $1,000, $2,500.

Secure STM - Underwritten by Standard Security Life Insurance Company of NY (Rated A Excellent by AM Best) Coverage from 30 days up to 6 or 12 months. $2,000,000 in coverage per person. Deductible options: $250, $500, $1,000, $2,500, $5,000. Includes STM Enhancement Series (dental, vision Rx and more).

Secure STM - Additional Benefits Included With Plan

Secure STM Enhancement Series - Included with the Secure STM coverage is the Communicating for America (CFA) STM Enhancement Series which provides members with discounts for the following services and or purchases:

Dental Services - Save an average of 28% and up to 50% on dental expenses from 53,000 dentist in the Aetna Dental Access plan.* Search For Providers by Clicking Here
Chiropractic Services - Receive 30% to 50% off at more than 3,000 private chiropractor locations.
Prescription Drugs - Save10% to 40% at over 55,000 pharmacies on name-brand and generic prescriptions. Members have saved more than $5,000,000 thus far! The average savings is $14.00 per order.
Vision Eyewear Care - Receive 20% to 60% off eyeglasses, contact lenses and non-prescription sunglasses through a network of more than 10,000 retail optical locations, including Pearle Vision, JC Penney's, LensCrafters and Wal-Mart.
Nurse on Call - Access to a registered nurse 24-hours a day, seven days a week.
Pro Health - Purchase vitamins, herbs and nutritional supplements at discounted prices. CA members receive an extra 10 per cent off already low prices.
Low Rate Home Mortgages - Receive up to $500 credit at closing, competitive interest rates and extended lock rate options.
Low Rate Student Loans - Access to Federal Stafford, PLUS and alternative loans.

Instant Quotes & Lead Generators - Be aware of sites that generate insurance leads. When getting an online quote, the only information needed is your zip code, the age of each person to be covered and rarely your email address. If a site requires your name and phone number, then your information will most likely be sold to a number of insurance agents and your phone will begin to ring.

Applying For Insurance - Most short term health insurance plans offer instant online approval. Coverage can begin as early as the day after you apply. You can apply completely online, by mail or fax. Accepted payment methods are credit card, debit card or check. If you are worried about entering your credit card number and other personal information online - then simply apply by mail or fax. Never apply for short term health insurance over the phone.

Bottom line - Choose a short term health insurance plan that best fits your budget and remember to consider what your out of pocket expenses would be if you were to file a large medical claim. Benefits and length of coverage may vary by plan and state. Plans may not be available in your state.