Many people dream of becoming self-employed, but aren't sure how they'll find affordable health insurance on their own. Laura covers six tips to find the best health coverage when you work for yourself or lose job-based insurance for any reason.
Tip #6: Use short-term coverage as a last resort
If you miss the deadline to enroll in a qualified health plan, but don’t qualify for the special enrollment period, are you simply out of luck? Fortunately, no. You can purchase a short-term health plan to get some amount of coverage until the next enrollment comes around.
Problem is, short-term plans don’t have to meet ACA standards. That means they can charge more if you have a preexisting condition, put caps on benefits, or not cover basic services like prescriptions and preventive care.
Because short-term plans fall so short, the law doesn’t consider them real insurance.
Because short-term plans fall so short, the law doesn’t consider them real insurance. So even if you buy one, you’re still considered uninsured and have to pay the Obamacare penalty.
Having short-term coverage is certainly better than nothing after you lose job-based insurance, but should be replaced by a qualified health plan as soon as possible. That’s the best way to have the protection you need against the huge financial risk of medical costs.
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