Is Short-Term Health Insurance The Right Choice For Younger Healthier Individuals?

Health insurance under the Affordable Care Act, or Obamacare, is set up to be heavily funded by young healthy individuals who pay for coverage, but typically don’t get sick. People in their 20s and 30s who were able to get well-paying jobs right of out college might not mind paying for a little extra coverage that they don’t use, but many don’t fall into this category.

Feeling Cheated

Unfortunately, many young people find themselves in a situation where they graduated with a college degree, but only make enough to cover rent, car payments, student loans, utilities and a few other expenses. These folks may feel cheated by the Obamacare system that feeds off their vitality and puts an additional ongoing financial burden.

Woman with piggy bankForegoing insurance and taking the penalty might appeal to these folks, who might calculate that doing so is the cheaper option. But, what if something were to happen? Active young people are at a risk of injury while exercising or playing sports. More inactive young people put themselves at increased risk for a range of problems, from depression to weight-related disorders.

Individuals looking to forego coverage through the ACA but maintain a health insurance safety net are taking a close look at short-term health insurance.

Short Term Insurance, an Option That May Work

While short-term insurance doesn't meet the minimum essential requirements under the ACA and therefore doesn't fulfill the ‘individual mandate,’ these plans can fill a gap in coverage while someone waits for their 2015 Obamacare coverage to kick in or serve as emergency coverage for someone looking to take the Obamacare penalty and save money.

The average standard short-term insurance plan costs $107 per month. With the costs of Obamacare plans increasing significantly, short term plans will become more attractive.

Those interested in short term plans should understand that this kind of coverage doesn’t meet ACA standard and therefore applicants could be turned down for a pre-existing condition. These plans also don’t typically cover preventative measures, as is mandated by the ACA.

However, short-term plans do guard against catastrophic injuries and can offer peace of mind for individuals worried about a worst-case scenario when it comes to their health. Going the short-term route could also be more affordable for people not getting a subsidy, considering that Obamacare rates are increaseing.

Call Us to See If Short Term Is The Right Choice For You LogoIndividuals looking to shop around for a short term plan should consider looking at coverages offered at Health-Dental-Life Insurance. We have a fully-trained staff standing by to assist you in looking to navigate your coverage options. You can also reach us by phone at 1-800-257-1723.