Temporary Health Insurance Key Terms

Feel better knowing many temporary health insurance key terms

Whether you need temporary health insurance, also known as short-term health insurance, for a few weeks or several months, it will help to know many temporary health insurance key terms. Temporary health insurance is for those who are between jobs, working temporarily on a part-time basis, are out of work due to a strike, or those who are students. If you find you need temporary health insurance, the following are some key terms you should be familiar with.

 

COBRA

COBRA is a type of temporary health insurance that refers to a continuation of existing benefits. COBRA is the acronym for the Consolidated Omnibus Budget Reconciliation Act, which gives workers who are laid off, have work hours reduced or who are affected by a life event like divorce or death, the right to continue health benefits coverage through their group health plan.
Try: U.S. World & News Report offers information about COBRA, including eligibility, duration and coverage details.

Pre-existing condition

Many temporary health insurance plans do not cover illnesses or injuries that occurred in the recent past. The exact type of illness or injury is different from state-to-state. In general, though, temporary health insurance plans in any state have some sort of pre-existing medical condition clause.
Try: JC Lewis Insurance Services offers a brief description of pre-existing conditions.

Indemnity, or fee-for-service

Most temporary health insurance plans allow participants to go to any doctor for any fee. This is called a fee-for-service or indemnity plan. While some temporary health insurance plans may offer a Preferred Provider Organization (PPO) Plan, most use only the indemnity plan.
Try: InsureLane explains indemnity and how it works in relation to temporary health insurance plans.

Gap coverage

Gap coverage is another term used in describing temporary health insurance or short-term health insurance. The term refers to the fact that temporary health insurance is usually required when there is a gap in a person's usual health insurance coverage due to temporary circumstances.
Try: Find a description and several examples of gap coverage at HealthCare.com.

Deductible and co-insurance

Like many types of insurance, temporary health insurance plans have deductibles and co-insurance payments. The deductible refers to the amount that must be paid out-of-pocket before the insurance company begins to make payments on a claim, and co-insurance is the percentage of charges paid by the participant.
Try: Long Term Consumer Care describes how deductibles and co-insurance works with temporary health insurance plans.

HIPAA

The Health Insurance Portability and Accountability Act of 1996, or HIPAA as it is referred to, sets national standards for health plans, including temporary health insurance plans. HIPAA addresses the safety and privacy of health-care information.
Try: Insure.com thoroughly explains HIPAA laws and patient rights in regard to health insurance plans, including temporary or short-term health insurance plans.

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