Short term or temporary health insurance policies cost 50% less than Affordable Care Act (ACA) policies, mainly because they don’t cover maternity, mental health, or pre-existing conditions present within the last 5 years. Some policies cover preventive care, others don’t. This is not to say that you can’t have certain pre-existing conditions, you can, but treatment for those medical conditions will not be paid for by the insurance company. Many of us have pre-existing conditions such as high blood pressure, cholesterol issues, acid reflux, and pins in bones from past accidents, but can still qualify for short term coverage. There are medical conditions such as obesity, diabetes, heart conditions, and cancer that will prevent an individual from obtaining short term coverage. In these situations, an individual ACA policy is best, or group coverage if available.
Arizona short term health insurance policies are very similar to individual health insurance policies that were sold pre-ACA which went into effect on March 23rd, 2010. Back then, to obtain coverage an individual answered medical questions before a policy was issued, and the possibility existed that the applicant could be denied coverage, or certain medical conditions excluded from coverage, based on health history. Maternity was rarely covered on individual plans back then, and certain pre-existing conditions were subject to waiting periods. The vast majority of applicants pre-ACA were accepted for coverage, and that is true today regarding short term policies.
Arizona offers more health insurance choices to residents of the state than many other states. Sadly, this fact is due to the political leanings of each state. There are a handful of states that do not allow short term health insurance plans to be sold, while others limit coverage to a few months and under special circumstances. Thankfully, in Arizona residents may lock-in short term coverage from 30 days to three years at a time.
Arizona temporary health insurance plans come with a variety of costs, deductibles, coinsurance and, on some plans, copays for doctor’s office and urgent care visits and prescription drugs.
Generally speaking, short term policies are designed to cover unexpected accidents and illnesses. Depending on the insurance company and policy chosen, coverage limits range from $100,000 to $2,000,000. It is highly recommended that at least $1,000,000 in coverage be obtained. Of course, $2,000,000 in coverage is even better, but these policies are a bit more expensive for obvious reasons.