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Short Term health insurance Arizona

2024 Guide to Short-Term Health Insurance in Arizona: Get a Free Quote Today

short term medical insurance in Arizona

In the ever-changing landscape of health insurance, understanding your options is crucial. One such option that has gained traction in recent years is short-term health insurance. Particularly in Arizona, these plans offer a flexible and often more affordable alternative to traditional health insurance. This article aims to provide a comprehensive overview of short-term health insurance in Arizona, discussing its availability, cost, benefits, and limitations.

 We’ll delve into the enrollment process, compare these plans with other types of health insurance, and explore the legal aspects and consumer protections in place. Whether between jobs, waiting for other coverage to begin, or simply seeking a cost-effective solution, this guide will help you navigate the intricacies of short-term health insurance in Arizona.

Short Term health insurance Arizona
Short Term health insurance in Arizona

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Overview of Short-Term Health Insurance in Arizona

Short-term health insurance, also known as short-term, limited-duration insurance (STLDI), is a type of health plan designed to provide temporary medical coverage during periods of transition, such as being between jobs, waiting for other coverage to start, or needing a cost-effective solution to more traditional health insurance for some time. These plans are top-rated in Arizona, offering a flexible and often more affordable alternative to traditional health insurance.

Short-term health insurance plans in Arizona provide basic coverage for unexpected medical expenses, such as emergency care and hospitalization. They are not required to cover essential health benefits like maternity and newborn care, mental health services, or prescription drugs mandated for ACA-compliant plans. This means that the exact coverage and benefits offered by a short-term plan depend on the particular policy, and these plans generally cover much less than comprehensive major medical insurance plans.

The availability of short-term health insurance in Arizona is robust, with at least seven insurers offering these plans as of 2023. The state permits the sale of short-term health plans with initial durations of up to 364 days, and these plans can be renewable for a total duration of up to 36 months. However, the insurers selling short-term health coverage in Arizona can set their term limits and opt to make their plans non-renewable.

The popularity of short-term health insurance in Arizona can be attributed to its affordability and flexibility. Arizona’s average monthly premium for a short-term health insurance plan was $290.72 in 2023. However, it’s important to note that while these plans may have lower premiums, they also often apply dollar caps and higher deductibles on coverage.

Availability and Duration of Short-Term Health Insurance in Arizona

In Arizona, short-term health insurance is readily available and serves as a temporary coverage option for individuals in transition or seeking an alternative to traditional health insurance plans. As of 2023, at least seven insurers are offering short-term health insurance plans in the state. These plans are designed to provide coverage for a limited period, with the flexibility to cater to the specific needs of individuals who may not require or have access to more permanent health insurance solutions.

The duration of short-term health insurance plans in Arizona can vary, but they are generally aligned with federal regulations that allow for initial terms of up to 364 days. Moreover, these plans can be renewed for up to 36 months, providing a longer-term temporary coverage solution for those who need it. However, it is essential to note that Arizona insurers have the autonomy to set their term limits within these parameters and may choose to offer non-renewable plans.

The flexibility in the duration of these plans results from Arizona’s enactment of legislation (SB1109) in 2019, which updated the state’s durational limits for short-term health insurance to align with the federal rules that took effect in 2018. This legislative change has expanded the options for Arizona residents, allowing them to have access to short-term health insurance for more extended periods if necessary.

Cost of Short-Term Health Insurance in Arizona

The cost of short-term health insurance in Arizona can vary widely based on several factors, including the insurer, the insured’s age, and the level of coverage selected. In 2023, the average monthly premium for a short-term health insurance plan in Arizona was reported to be $290.72. This average provides a general idea of what individuals might expect to pay for temporary coverage.

However, it’s important to note that costs can vary significantly based on different plans. For instance, one economy plan for a 33-year-old female living in Peoria, Arizona, featured a monthly premium of $74.20, with a $10,000 deductible and $10,000 maximum out-of-pocket cost, while a deluxe plan offered a premium of $172.30 per month, with a $5,000 deductible and a $3,000 maximum out-of-pocket cost. These examples illustrate how premiums can differ depending on the deductible, coinsurance, maximum out-of-pocket limits, and total policy coverage.

Short-term health insurance plans are generally less expensive than ACA-compliant major medical health insurance due to their limited coverage. They do not cover essential health benefits required by the ACA, and people with pre-existing conditions can be denied coverage. This limited coverage is a crucial reason why short-term plans can offer lower premiums.

Enrollment Process for Short-Term Health Insurance in Arizona

Applying for short-term health insurance in Arizona is a relatively straightforward process. Interested individuals can apply through a health insurance agent, purchase online, or buy through other aggregators selling short-term healthcare coverage. The online application and payment process typically takes about five minutes.

The application process involves answering a few qualifying questions. Unlike ACA-compliant plans, there is no fixed open enrollment period for short-term health insurance, meaning you can apply anytime. Once the application is approved, coverage can begin the next day.

It’s important to note that short-term health insurance plans are not fully comprehensive and do not cover pre-existing conditions. Therefore, individuals with such conditions may be denied coverage. Additionally, these plans may not cover essential preventive care, maternity care, and mental health services.

Comparison with Other Health Insurance Plans in Arizona

Short-term health insurance in Arizona is one of several types of health coverage available to residents. It’s designed to offer temporary coverage and is often more affordable than other options, but it also has significant limitations compared to more comprehensive plans.

ACA Individual and Family Plans

ACA-compliant plans, or Obamacare plans, are available through the Health Insurance Marketplace. These plans must cover essential health benefits, including preventive, maternity, and mental health services. They cannot deny coverage or charge higher premiums based on pre-existing conditions. Financial assistance may be available based on income, and these plans have a specific open enrollment period.

Small-Group Insurance

Small-group insurance is for businesses with 2 to 50 employees. These plans must also comply with ACA requirements, covering essential health benefits. Rates are regulated and must fall within a certain range based on the coverage provided.

Medicare

Medicare is a federal program primarily for people aged 65 and older and younger individuals with certain disabilities. It includes parts covering hospital care, medical services, and prescription drugs, with various premiums, deductibles, and co-payments.

Medicaid (AHCCCS)

Medicaid in Arizona, known as the Arizona Health Care Cost Containment System (AHCCCS), provides coverage for low-income individuals and families. It covers many services, including doctor’s visits, hospital care, and prescriptions. Eligibility is based on income, and most enrollees have no premiums.

Short-Term Health Insurance

Short-term health insurance plans in Arizona can be purchased year-round and can last up to 364 days, with the possibility of renewal for up to 36 months. These plans are not required to cover essential health benefits and can deny coverage for pre-existing conditions. They are generally less expensive than ACA plans but offer limited coverage and can have high out-of-pocket costs.

Benefits of Short-Term Health Insurance

Short-term health insurance offers several benefits, particularly for individuals needing temporary coverage or transitioning. Here are some of the key advantages:

**Affordability**: Short-term health insurance plans typically have lower premiums than other types of health insurance, such as ACA-compliant plans. This makes them an attractive option for those who are cost-conscious or do not qualify for ACA subsidies.

**Quick Coverage**: These plans can provide immediate coverage, often with proof of insurance available shortly after approval. This can be particularly beneficial for those needing coverage quickly, such as individuals between jobs or waiting for other insurance coverage to begin.

**Flexibility**: Short-term health insurance plans can be purchased anytime, not just during specific enrollment periods. This flexibility allows individuals to obtain coverage when needed most, such as during a coverage gap.

**Coverage for Essential Health Services**: While not as comprehensive as other types of insurance, short-term plans typically provide some level of coverage for preventive care, doctor visits, urgent care, and emergency care. Some plans may also offer coverage for prescriptions.

**Duration of Coverage**: In Arizona, short-term health insurance plans can last up to 364 days, with the possibility of renewal for up to 36 months. This allows individuals to have coverage for a significant period, which can be helpful during transitions such as job changes or waiting for other coverage to start.

However, it’s important to note that short-term health insurance plans are not required to cover essential health benefits and can deny coverage for pre-existing conditions. They also tend to have high out-of-pocket costs. Therefore, while they can be a good option for temporary coverage, they may not be suitable for everyone or for long-term health needs.

Limitations of Short-Term Health Insurance

Short-term health insurance, while beneficial in certain circumstances, does have several limitations that potential policyholders should be aware of:

**Lack of Coverage for Pre-existing Conditions**: Unlike ACA-compliant plans, short-term health insurance plans generally do not cover pre-existing conditions. This means that individuals with health conditions that existed before the start of the coverage may not receive benefits for treating these conditions.

**Limited Coverage for Essential Health Services**: Short-term health insurance plans are not required to cover the ACA’s 10 categories of essential health benefits. As a result, these plans often do not cover services such as maternity care, mental health services, substance use disorder treatment, and prescription drugs. The exact coverage varies by plan, so it’s essential for consumers to carefully review the details of a plan before purchasing.

**Not Fully Comprehensive**: Short-term health insurance is not intended to be a long-term solution for health coverage. These plans typically provide less comprehensive coverage compared to traditional health insurance plans. They are designed to cover emergencies and unexpected illnesses but may not cover routine care and preventive services to the same extent as traditional plans.

**Coverage Caps**: Short-term health insurance plans often have annual or lifetime limits on coverage. This means there may be a maximum amount the plan will pay for covered services in a given year or over the plan’s lifetime. Once this limit is reached, the policyholder is responsible for all additional costs.

**Potential for Non-renewal**: If a policyholder develops a health condition while covered under a short-term plan, they may not be able to renew their plan or may be denied coverage if they apply for a new short-term plan.

**Ineligibility for Certain Health Plans**: Purchasing a short-term health insurance plan in Arizona may make you ineligible for any guaranteed individual health plans, commonly called HIPAA Plans.

While short-term health insurance can provide a temporary safety net for some individuals, it’s essential to understand these limitations. These plans may not be the best choice for everyone, particularly those with pre-existing conditions or needing regular medical care.

Consumer Protection and Legal Aspects

In Arizona, the legal aspects of short-term health insurance are primarily governed by Senate Bill 1109, passed by the Arizona Legislature, and became effective in the summer of 2019. This law allows insurers to sell short-term limited-duration (STLD) health insurance plans with longer coverage periods. Expressly, it permits an initial coverage period of up to 364 days and, after that, renewals or extensions of coverage so that the total duration is up to 36 months.

For consumer protection, all Arizona STLD policies must display a specific notice on the policy and in any application materials in 14-point type. This notice informs consumers that the coverage is not required to comply with certain federal market requirements for health insurance, principally those contained in the Affordable Care Act (ACA). It also advises consumers to check their policy carefully to ensure they understand what is and isn’t covered.

It’s important to note that while Senate Bill 1109 allows for more extended coverage periods, insurers selling short-term health coverage in Arizona can set their own term limits shorter than the allowable maximum and can opt to make their plans non-renewable.

If consumers believe that an insurance company or insurance professional has violated Arizona law, they can contact the Arizona Department of Insurance and Financial Institutions, Consumer Services Section by email or phone.

Choosing a Short-Term Health Insurance Plan

Choosing a short-term health insurance plan requires careful consideration of several factors to ensure that the plan meets your specific needs and circumstances. Here are some key factors to consider:

**Cost**: Consider the plan’s cost, including the monthly premium, deductible, co-payments, and out-of-pocket maximum. While short-term plans typically have lower premiums than other types of health insurance, they can also have high deductibles and out-of-pocket costs.

**Coverage**: Review the coverage details of the plan. Short-term health insurance plans are not required to cover essential health benefits, so it’s important to understand what is and isn’t covered. This includes preventive care, emergency services, hospitalization, maternity and newborn care, mental health services, prescription drugs, and more.

**Duration of Coverage**: Consider the length of coverage you need. In Arizona, short-term health insurance plans can last up to 364 days, with the possibility of renewal for up to 36 months.

**Insurer’s Reputation**: Research the reputation of the insurer. Look for reviews and ratings online, and consider the insurer’s history of handling claims. The Arizona Department of Insurance and Financial Institutions provides information about insurance companies, including complaints or disciplinary actions.

**Exclusions and Limitations**: Understand the exclusions and limitations of the plan. Short-term health insurance plans often exclude coverage for pre-existing conditions and have coverage caps, which limit the amount the insurer will pay for covered services.

**Eligibility for Other Health Plans**: Consider whether you are eligible for other types of health insurance, such as ACA-compliant plans, Medicaid, or employer-sponsored insurance. Depending on your health needs and financial situation, these plans may offer more comprehensive coverage and could be more cost-effective.

Short-term health insurance companies

Short-term health insurance is a type of health coverage that provides temporary coverage for individuals in transition or those who need coverage for a specific period. In Arizona, several companies offer short-term health insurance plans. Here are some of them:

**Allstate Health Solutions (National General)**: Allstate Health Solutions, under National General, offers short-term health insurance plans in Arizona. These plans are designed to provide temporary coverage for individuals who need health insurance for a specific period.

**Companion Life**: Companion Life offers short-term health insurance plans that provide coverage for a limited period. The cost of these plans can vary depending on the specific coverage and duration of the plan.

**Everest Reinsurance**: Everest Reinsurance is another company offering Arizona short-term health insurance plans. These plans are designed to provide coverage for individuals who need temporary health insurance.

**UnitedHealthcare**: UnitedHealthcare offers short-term health insurance plans in Arizona. These plans are designed to provide coverage for a specific period and can be a good option for individuals who need temporary coverage.

**Independence American Insurance Company**: Independence American Insurance Company offers short-term health insurance plans in Arizona. These plans provide coverage for a specific period and can be a good option for individuals who need temporary health insurance.

**Pivot Health**: Pivot Health offers short-term health insurance plans in Arizona. These plans provide temporary coverage for individuals who need health insurance for a specific period. Pivot Health also provides supplemental insurance for accidents and illnesses to complement your short-term health insurance policy.

When choosing a short-term health insurance plan, it’s essential to consider factors such as the plan’s cost, the coverage it provides, the duration of the coverage, and the insurance company’s reputation. It’s also important to understand that short-term health insurance plans are not required to cover essential health benefits and can deny coverage for pre-existing conditions.

FAQs

How much is health insurance in Arizona per month?

The average cost of health insurance in Arizona is around $517 per month for a 40-year-old with a Silver plan. However, the cost can vary depending on the specific plan and the individual's age and health condition.

Is short term insurance a good idea?

Short-term insurance can be a good idea for individuals needing temporary coverage, such as between jobs or waiting for new job-based insurance to kick in. However, it's important to note that short-term insurance may not offer benefits for maternity, mental health, or pre-existing conditions. Therefore, it should be considered a temporary solution.

Which Arizona health plan is best?

According to a study, Imperial Insurance Companies, Inc. is Arizona's top health insurance provider. However, the best health plan can vary depending on individual needs and circumstances.

How much is Obamacare in Arizona?

The cost of Obamacare, or Affordable Care Act (ACA) health insurance plans, in Arizona can vary depending on the specific plan and the individual's income. Some individuals may qualify for premium tax subsidies, which could reduce the cost of monthly premiums. Some Americans may even qualify for $0 premium bronze and silver plans.

Does Arizona have free health insurance?

Individuals may qualify for free or low-cost health insurance in Arizona through Medicaid. Eligibility for Medicaid depends on certain factors such as income and family size.

Why is short term insurance cheaper?

Short-term insurance is generally cheaper than traditional health insurance because it offers less comprehensive coverage. For instance, it may not cover pre-existing conditions or certain medical services like maternity or mental health care.

How long is short term insurance?

Short-term insurance plans typically last up to 364 days; some can be renewed for up to three years. However, the duration can vary depending on the plan and the insurance company.