If you are younger and do not want to pay for coverage you do not think you need, then consider short-term or emergency types of insurance plans. Sometimes these are called catastrophic insurance policies because they cover you in case of something devastating such as severe injury from a car accident.
Many find this type of insurance fits their budget and lifestyle better than a full-blown policy. Understand that short-term or catastrophic policies cover the bare minimum in most instances.
Emergency type policies often have higher deductibles so you must be prepared to pay a good deal of the cost out of pocket for medical services.
Each state sets its own policies when it comes to short-term healthcare insurance. Some states allow short-term plans offered by insurance companies to actually extend to a full year. Other states do not allow this to occur, so make sure you check your state’s health insurance website to be certain.
The benefit to having short-term healthcare insurance plans is that your out of pocket each month is low, meaning your premiums are quite low.
However, the drawback to this type of plan is that it does not cover anything type of condition that is pre-existing and it does not cover all aspects of your health. It only covers the bare minimum and you could find yourself with hefty medical bills if something unexpected and long term happens.
This type of policy is good for you if you do not tend to engage in risky behaviors, are under the age of 30 and have enjoyed good health for a number of years. It is also a good option for those who have set aside money in a savings account to handle medical emergencies. Unfortunately, not many consumers do this and short-term and/or emergency policies leave them worse off than if they had just gotten a lower tier health insurance plan through the marketplace.