A Short-Term Health Insurance Primer
Individual Health Insurance in California

Murphy’s Law has a way of finding us when we least expect it, often when we can least afford it. Since so much of modern health insurance is tied to employer-provided plans, that old Murphy’s Law is likely to knock on our door, particularly if we’re single, when we don’t have an employer and probably no health insurance.

But if you’re not employed, how can you afford an expensive health insurance policy? Shouldn’t you just stay uninsured and hope for the best? Murphy’s Law says no. A more affordable option for Californians might be short-term health insurance, a policy that’s in place anywhere from 30 days to 12 months. It’s tailor-made for California residents who are laid off, on strike, between jobs, a recent graduate no longer covered by your parents’ health insurance policy, waiting for other health insurance to become active, or a seasonal employee such as someone who works for a ski resort or a national park.

These types of health insurance policies are not designed as permanent coverage, rather as a stop-gap measure until you can acquire a more traditional health insurance policy.

One benefit to seeking this type of health insurance coverage is that the application process is often less complicated and time consuming. Often, you can apply one day and have coverage by the next. That’s good to know when Murphy’s Law is cruising California’s highways and byways looking for your uninsured self.

However, since the coverage is more temporary, it doesn’t cover everything a normal policy would. It’s there for emergencies such as accidents and unforeseen illnesses, not for preventative medicine or pre-existing conditions (an illness or injury which has been diagnosed or treated in the past three to five years). Dental, vision, pregnancy and childbirth expenses are likely also not included. You also can expect to have to pay an initial deductible and co-payments for doctor visits, hospital stays and any other covered visits or procedures.

Keep in mind that purchasing a short-term health insurance plan after losing a job that provided health insurance as part of the benefit package will make you ineligible for any HIPAA (Health Insurance Portability and Accountability Act) plans, guaranteed health coverage typically intended for people with pre-existing conditions who might find acquiring individual health insurance quite difficult because insurance companies don’t like to take on known risks.

Like with any type of insurance, you need to do some comparison shopping. You can check with insurance agencies in your town or search for online quotes from the numerous side-by-side comparison sites.

While it might be tempting to just skip the expense of health insurance if you’re young and healthy, it’s not a smart move. Take a moment and imagine how many tens of thousands of dollars of debt you could accumulate if you had a serious car accident or were diagnosed with cancer and didn’t have insurance. Not only will you have to deal with treatment and recovery, you’ll also have to deal with the bills and possibly calls from bill collectors for years to come. That short-term health insurance is looking better all the time.