Short-term medical (STM) plans provide individual and family coverage from 30 days up to 6 months. These plans are major medical plans designed to protect you and your family when temporary health coverage is necessary for a specific amount of time. A short-term medical plan is ideal for individuals who are between jobs or in need of immediate coverage while they shop for more permanent coverage.
Short-term health plans typically do not cover pre-existing medical conditions. While differing by state, in general, short-term health insurance policies exclude coverage for conditions that have been diagnosed or treated within the previous 3 to 5 years.
If you have an existing medical condition and are currently insured, you may want extend your current insurance. Employer-sponsored insurance can be extended under a government-regulated option commonly referred to as COBRA, which you should seriously consider if you have an existing medical condition.
At the end of your coverage term, most health insurance companies allow you to re-apply for another short-term plan. These plans do not typically constitute an automatic continuation of your first plan. Many short-term health insurance plans only allow you to re-apply once.
Like most health insurance policies, you request coverage by submitting an insurance application. You can typically apply for insurance online, or by sending the insurance company a paper application.
Coverage for most short-term health insurance plans can start as soon as 24 hours after you submit your application. In order for coverage to start promptly, you can make your first premium payment by supplying a valid credit card number with your application. Please note that credit card billing of premiums is optional and you can obtain coverage without using that method of payment.
If you do not need your coverage to start immediately, you can select a date up to 30 days in the future.
If you submit an application you are under no obligation to buy the policy. After submitting your application you may cancel it at any time during the underwriting process. Also, you have a 'free look period' after issuance of the policy in which you are allowed to cancel your coverage and obtain a full refund of your premium. The 'free look period' is generally ten days.
When you submit an application you will typically include your credit card number or a check for the first premium payment. Most insurance companies will not charge your card or deposit your check until you are approved. If you are charged or your check is cashed and you are denied for coverage or cancel your application prior to approval, the insurance company will issue a refund.
Some insurance companies may charge an application fee, typically $25 or less. You will be notified in the application if the plan you chose requires an application fee. Please note that these fees are non-refundable, and not included in the 'free look' refund provision.
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