Reader question:

How much does temporary health insurance cost?

Jack

Great question.

The main reason that a lot of people choose to take out a short term health insurance policy is because it is so cheap. The reason it so cheap is because, well, it is short term and its coverage is limited. It does not cover things like pre-existing conditions and preventive care, so they tend to take on people who do not need those things and that lowers the premium payments for everyone. Most people, then, who have temporary health insurance are healthy and loyal as they only have to have the policy for twelve months. That’s a pretty risk free insured group, and without risk and with very few health insurance claims, costs are less.

If you are married and have two kids and live in Chicago, for example, let’s look at your case. You could be paying as little as three hundred dollars every month for the whole family to get one million dollars of temporary health insurance coverage with a one thousand dollar deductible. If you don’t make any claims, you’ll probably be able to renew your plan for three years until you find a long term health insurance coverage.

If you’re just a single guy and want the same thing, you’re looking at a mere seventy bucks a month.

Where the cost really comes in, though, is when you need to file a health insurance claim on your short term health insurance plan. If you have a one thousand dollar deductible, then your 100% coverage probably won’t kick in until five thousand dollars, and before that you will be co-paying.

A lot of companies that offer short term health insurance plans give you the option to pay either all at once or by month. If you pay all at once, you can get a discount.

Cheers,

Fashun Guadarrama.