Would A Short Term Health Insurance Be Considered Real Insurance Coverage?

Is Short Term Health Insurance a Scam?

Short term health insurance claims to be an alternative to COBRA benefits because it costs so much less. Many people compare the two and say there is no way that the temporary insurance plans are legitimate because they cost so much less. The main thing that people need to do when considering a temporary medical policy is contact the state's department of insurance to ask them about the company offering the policies. If it is a reputable company, they will have gone through the approval process to ensure compliance with all the rules and regulations that every insurance plan has to go through.

Most people shop for short term medical insurance when they have been offered COBRA from a job they just left. Generally when people are between jobs, they need every penny to go to necessities of living. So when they get a COBRA bill they were not expecting, they panic and look for alternatives.

Many regular insurance plans are good, but they require much more intrusive medical history exams than the temporary health plans do. Sometimes when you apply for a regular insurance plan, you have to give them your doctor records. Other times the company requires a nurse to administer a physical before they issue the policy. People who apply for short term insurance plans only have to answer a few health questions as either "yes" or "no". Since most people are familiar with the process to get insurance, they do not believe that the questions are enough for real insurance.

People think short term health insurance plans are a scam because they are generally less expensive and simpler to get than other types of policies. While temporary medical is not designed for every situation, the plans are regulated through the department of insurance in each state just like any other medical insurance product would. If anyone needs coverage for a short period of time to bridge a gap between coverage, temporary medical plans are not a scam. Check online for more information from several great websites.