With independence, however, comes responsibility - and obtaining health
insurance coverage becomes a
necessary task. When a child graduates from college, he or she is generally
no longer covered under his or her
parents' health plan. Fortunately,
college graduates can turn to
short-term medical insurance (STM)
as a cost effective alternative to
individual health insurance plans.
STM insurance is a major-medical insurance product available in most states. It has a deductible and
co-insurance, similar to traditional major medical, but typically costs 30-35 percent less than
individual health policies and does not have network provider restrictions. STM policies offer an
economic advantage, in part, because of their limited length of coverage.
College graduates may find STM
insurance beneficial, even if they have a job lined up right after graduation. Many employers
impose a waiting period of a few to several months before health benefits begin, so an STM policy
can be used to bridge this gap in coverage.
Not Just for Grads
STM insurance is a viable and often overlooked option for many people, not just recent college
graduates. Prime candidates for STM coverage include individuals between jobs,
individuals working in seasonal or
part-time jobs, newly hired
employees not yet eligible for their new employer's group health plan;
independent contractors and
temporary workers; individuals
recently discharged from the military; and individuals recently divorced and no longer on a spouse's policy.
The Internet has made the ability
to research plan options, obtain rates,
apply, and secure STM coverage a 10-minute process. For healthy
individuals with short-term health insurance needs, STM is emerging as a smart, affordable solution
to fill the health insurance gap for many people. The high cost of health care and the risk of
being uninsured make STM a very attractive alternative.
Short-term major medical insurance special features
- $2 million lifetime maximum per covered person
- Freedom to choose any doctor or hospital
- Re-apply for coverage an unlimited amount of times
- Convenient payment options
- Pay monthly up to 6 or 12 months of coverage
- Discounts available for single payments made on 30-180 day coverage
Contact IHC Health Solutions about health insurance options for young adults, and beyond.
Jim Kenneally is chief sales and marketing officer for Health Plan
Administrators, Inc. (HPA), a wholly owned subsidiary of The IHC Group, an insurance organization composed of Independence
Holding Company (NYSE: IHC) and its operating subsidiaries. HPA is a full-service third-party adminis- trator specializing in short-term medical insurance.
