The Disadvantages of Short-Term Health Insurance

Short-term health insurance is a product that many people purchase when they are in between jobs. Instead of being on group plans, they have to purchase this type of insurance coverage to protect them from having to pay large medical bills. Here are some of the disadvantages of having short-term health insurance.

Costs of New Insurance

When you have a short-term health insurance policy and develop a health condition, the short-term insurance will pay for your medical bills. However, when you try to get on a regular insurance plan after that, you may find that the cost of your premiums goes up substantially. The cost of the new insurance may be more than you can afford.

Out-of-Pocket Costs

Another potential disadvantage of short-term health insurance is that the pocket costs may be high. You may have a very high co-pay or co-insurance amount on your policy. Because of this, if you have a major medical issue while you are on short-term health insurance, you may end up paying a substantial amount of money out of your own pocket on top of the premiums that you have already paid to the insurance company. This has helped contribute to the financial problems of many people.

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