The new age of economy brought us to a point where freelancers are a highly popular working force and career of choice for many people across the globe. It is also a great way to balance a healthy lifestyle with work when compared with other industries on the market.
According to statistics, there are approximately more than 56 million freelancers in the USA, and 30% of them work full time. Even though we can consider numerous benefits of becoming a freelancer, the most significant disadvantage is the lack of employer’s plans. Finding health policy is complicated, which is why you should click to read more on the link we shared with you.
Therefore, if you are a self-employed person or freelance worker, you will be able to choose various health insurance options that exist on the market. One of the most popular solutions for freelancers is short-term health insurance.
What Is Short Term Health Insurance?
Limited duration or short-term health insurance in the form of coverage that will provide health protection for limited periods. It is a necessary and temporary policy, which is correctly used for a medical emergency, so you will not be able to handle daily med care as well as prevention.
Remember that these plans are not ACA-compliant, and back in the day, people used them to fill a gap in already existing coverage when they were in-between jobs. Regulations changed in 2019, and today, more and more people choose this particular policy over traditional ones.
According to predictions, the number of people enrolling in this particular policy will increase by 600,000 in 2020. Keep in mind that this specific type of coverage will evolve with increased demand, so you will be able to find numerous options available on the market.
Reasons Why Freelancers Choose Short-Term Health Coverage
- If you cannot qualify for Medicaid due to significant income and you cannot afford to spend on traditional health coverage, the best solution for your need is a short-term alternative which is a less expensive and much better option than being uninsured.
- In case you wish to be protected, but you neglected the open enrollment period, which would qualify you for traditional policies. Instead, you should take a short period one until the next enrollment period, where you can choose the different options.
- You can use it as an alternative to ACA options. Even though freelancers can qualify for health insurance through the marketplace, the cost is much more expensive than other types. Keep in mind that before 2019, people had to handle penalties with ACA compliant health plans. However, today, there are no penalties when insuring you with a short-term alternative.
What Will You Get With Short-Term Insurance Plan?
When compared with other types of plans that you can choose, we can consider numerous benefits of choosing this particular plan instead. At the same time, not all states will have short-term projects, but when you find the offer, you will be able to get coverage for:
- Preventive care
- Pregnancy, prenatal and maternity care
- Prescription drugs
- Mental and abusive issues
We recommend you to visit this site: https://www.healthline.com/health/consumer-healthcare-guide/compare-health-insurance so that you can learn how to compare different policies with ease.
Differences between Marketplace and Short-Term Coverage
Apart from the idea that you will get reduced coverage, you should consider other things as well when choosing this particular plan:
- In case you already have a pre-existing condition, have in mind that you will not be able to choose short-term health insurance.
- You will have to undergo a medical exam for your plan, and they can deny you in case you have some medical issues along the way.
- Remember that these plans have high deductibles, which means that you have to pay more for monthly fees.
- In case you have a plan that lasts less than a year, each time you change it, the new deductible will come in place. This disadvantage will affect the money you have to pay every month.
- This particular plan has lifetime or annual policy limits that will affect the overall coverage.
- The great advantage of short-term coverage is the affordable price tag. You will be able to increase savings unless you have a severe medical situation. Therefore, if you are a healthy individual in general, and you do not use prescriptions regularly, you will reduce the expenses when compared with other plans.