Health is wealth, and no one can function properly without staying healthy, so it is thus important for you to stay healthy at all times. But paying medical bills can be quite expensive especially when you have other expenses to take care of, and that is where health insurance comes in. Health insurance ensures you can always take care of your medical expenses. It includes insurance for losses from medical expenses, dismemberment, disability, and accidental death. Health insurance is divided into two namely: short-term health insurance and long-term health insurance. In this article, we will focus more on short-term health insurance.
Short term health insurance
The first thing to do thus will be to define short term health insurance. Short term health insurance, as the name implies, is a health insurance plan with a short term duration, which ranges from several months to a year. This type of insurance is for individuals who need temporary medical insurance or can’t afford long term plans. It is thus mostly used by employees who frequently change jobs, students starting graduate school, and young adults in search of their own insurance because they are no longer covered by those of their parents.
Short term health insurance in Florida
Short term insurance is used in the US just as it is used in many other countries around the world. Obama during his tenure, under the patient protection and affordable care act (PPCA) limited short-term plans to three months term. But in October 2017, an executive order was signed by president of the United States, Donald Trump which allows individuals to purchase a short-term insurance plan with an initial duration of nearly a year with renewal options of up to three years. The availability of this new plan varies from one state to another as some states possess much stringent restrictions on short-term plans and do not follow the new federal rule. However, Florida is one of the states and participated in the increase of the short term loan duration. These rules are stated below:
Short-term plans can be renewed as long as the duration of the plan is not more than three years.
Short-term plans can be purchased with initial terms of up to a year.
Short term plan information should contain a disclosure to assist people digest how the plan differs from individual health insurance.
These rules were done with the aim of adding more stability and longevity to short-term insurance plan. Most states set their own short-term insurance duration limits while other states adopt this new federal rule. Florida adopted these new rules and added some other things. The Florida statute states that insurance health plans cannot ignore pre-existing issues for more than 24 months, and cannot look back more than 24 months to determine if the individual has pre-existing conditions. So in Florida, if a short-term insurance plan is non-renewable and lasts nothing more than six months, the insurer is giving the freedom to set its own rules regarding pre-existing conditions. Likewise, if the plan is renewable and/or contains a term better than six months, the insurer will be allowed to look up to twenty four months of medical history to find out if the pre-existing condition exclusions may apply. Also, the insurer will be barred from imposing pre-existing condition exclusions if he or she has had continuous credible coverage at that time.