by Robin Mayhall

Created on: March 08, 2007   Last Updated: April 25, 2007

Temporary Health Insurance: Bridging the Gap

For most individuals whose access to long-term health insurance has been interrupted, temporary health insurance may be a viable alternative even a lifeline for your budget during some of life's common transitions.

*Who needs temporary health insurance?
The good news is that most Americans have health insurance. The vast majority are covered through their employers, with another large group, those older than 65, covered by Medicare. Another percentage buy their own individual policies. But any of these situations can change at a moment's notice, making temporary health insurance a valuable option.

Temporary health insurance can help you bridge the gap if:
*You are between jobs due to a layoff, downsizing or simple career change
*You have just graduated college and are no longer eligible for your parents' policy
*You are changing jobs and looking for a lower-cost alternative to COBRA
*Your temporary, part-time, or seasonal job doesn't offer health insurance
*You've started a new job and are in the waiting period before employer-sponsored coverage kicks in

In any of these situations, you may be tempted to save money by going without insurance especially if your lack of coverage is only for a short time. But accidents can happen to anyone at any time, and a temporary policy offers crucial financial protection against the possibility of a large hospital bill. In addition, if you were to be diagnosed with a serious illness while uninsured, it could become very difficult to obtain long-term coverage later.

*What does temporary health insurance cover?
Temporary health insurance also called short-term medical insurance usually offers coverage that is very similar to a regular individual health policy. Depending upon your state of residence, you can apply for 30 to 365 days of coverage for physician services, inpatient hospital stays, inpatient and outpatient surgeries, prescriptions, X-ray and laboratory services, skilled nursing facility care, home health care and rehabilitation, to a lifetime maximum of up to $2 million.

Temporary health insurance plans generally offer a wide range of deductible and copayment options from which to choose, so you can pick a plan suited to your needs and budget.

*Who is eligible for temporary health insurance?
In general, healthy individuals under 65 and their dependent children through age 18 are eligible. Dependent children who are full-time students may be eligible through age 24. Foreign nationals

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