If you are between health insurance plans, there is a short-term health insurance option. Temporary health insurance can last from 30 days to 12 months, and can be purchased outside of the open enrollment period. This way, you don’t have to lose medical coverage during a transition period in your life.
Like catastrophic coverage, temporary health insurance plans focus on protecting against unforeseen accidents or illnesses. Certain plans can also work to fill the gaps in your existing coverage.
Will you have to pay the tax penalty?
Temporary or short-term health insurance plans work like health plans did before the Affordable Care Act was signed into law. Because temporary health insurance plans do not have the new Obamacare benefits, rights, or protections, they are not considered minimum essential coverage. This means that if you do not qualify for an exemption, you may have to pay the tax penalty for not carrying health insurance.
Fortunately, there is a short coverage gap exemption. If you do not have health insurance for a maximum of 3 months in a row, you can still avoid the tax penalty for not carrying health insurance.
Who should consider temporary health insurance?
Temporary policies are an affordable way to have healthcare coverage during gaps in your new or existing policies. Consider a temporary plan if you are:
- Transitioning between careers
- Waiting for group coverage from an employer
- Recently graduated from college
- Seasonally employed
- Transitioning from a parent’s health plan
- Leaving your current employer
- On strike
If you need to fill a short-term health insurance gap, consider temporary health insurance. HealthMarkets can help you find an affordable plan. Call us today at (800) 360-1402 or find a licensed health insurance agent near you.