Short-Term Insurance FAQs

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Find answers to frequently asked questions about short-term health insurance plans below.

If you would like to consult with one of our licensed agents to review your subsidy eligibility or discuss your insurance options, please contact us.

What is Better: Short-Term Medical or COBRA?

A short-term medical plan is an excellent, affordable alternative to COBRA for most healthy individuals. Individuals who have existing medical conditions should choose COBRA since short-term medical insurance does not cover pre-existing conditions.

The table below illustrates the major differences between short-term health insurance and COBRA.

	Short-Term Medical	COBRA Insurance
Type of Coverage	Major medical coverage, including inpatient & outpatient care	Same as previous benefits
Significant Exclusions	Pre-existing conditions, wellness benefits	All previous exclusions
Choice of Doctors	Free to choose any doctor or hospital in the PPO network	If previous coverage was PPO or HMO, choice limited to in-network providers
Price	Up to 70% less expensive than COBRA coverage, depending on insured’s age, city of residence, and cost of COBRA	Up to 102% of total price of employer’s plan. The 2016 median price in Illinois for single coverage is $536/month

Does Short-Term Insurance Cover Prescriptions?

Prescriptions are covered under short-term medical plans, but there are no copays.

You can present your short-term medical (STM) prescription card at participating pharmacies to receive a negotiated discount that is subject to deductible and coinsurance amounts. Below are real-life savings examples of commonly used prescriptions with the short-term medical prescription drug card.

Drug	Strength and Quantity	Retail Price	Price Using Card	Percentage Savings
Lipitor	10 mg, qty 30	$96.99	$69.99	28%
Levaquin	500 mg, qty 10	$145.99	$98.79	32%
Nexium	20 mg, qty 30	$179.99	$125.89	30%
Singulair	10 mg, qty 30	$124.99	$88.24	29%
Zyrtec	10 mg, qty 30	$83.99	$56.59	33%

>Retail pricing based on Walgreens Pharmacies in Milwaukee and Oconomowoc, Wisconsin, June 6, 2020. Pricing examples are for illustration purposes only. Prices are subject to change without notice and may vary by region. Payment must be made at the time of service to receive a discount. Prescription drug savings do not guarantee benefits under your STM plan.

What is Not Covered Under Short-Term Insurance?

Short-term medical insurance is designed to protect you in the event of an unexpected illness or injury. Because of this, preventive care, pre-existing conditions, physicals, pregnancy, immunizations, and dental or eye care services are not covered.

Medical expenses incurred outside the U.S. or Canada are also excluded. Individuals that need medical coverage outside of the country should get an international travel insurance policy.

How Do I Pay for Short-Term Insurance?

Most short-term health insurance programs make applicants pay the entire premium up front. With All State health insurance, you get the option to pay the entire amount up front or make monthly payments.

Single payment option: This is ideal if you know the exact number of days that your coverage is needed. The minimum number of days you may apply for is 30 days, the maximum is 365 days. No refunds are available after the 10-day free-look period.
Monthly payment option: If you are unsure of how long you will need coverage, this option would be the best for you. The “pay as you go” option gives you the flexibility to continue coverage for as long as it is needed, or simply stop payments and discontinue the plan once your temporary health insurance needs ends.

You can pay with either Visa or MasterCard, automatic charge to a checking account, or by check.

By paying the full amount, you will save 20% or more on your premium

Can I Renew My Short-Term Insurance Plan?

Short-term health insurance plans are not renewable. If your health insurance needs continue beyond your policy period, you may apply for a new plan under the following circumstances:

No claims were submitted while covered under a previous short-term medical insurance plan.
There has been no significant change to your health.
Any previous or current health condition or symptom will be considered a pre-existing medical condition that will not be covered under a new plan.

How Does HIPAA Legislation Affect Short-Term Medical Plans?

Short-term medical policies are generally exempt from the Federal Health Insurance Portability and Accountability Act (HIPAA). This means that carriers do not have to guarantee renewability or guarantee, issue, or waive the pre-existing condition limitation for federally eligible individuals.

In Illinois, an individual must maintain health coverage for 18 consecutive months without any break in coverage longer than 63 days to avoid pre-existing condition limitations. Previous creditable coverage includes:

A group health plan
Health insurance coverage
Part A or Part B of title XVIII of the Social Security Act (Medicare)
Title XIX of the Social Security Act, other than coverage consisting solely of benefits under section 1928 (Medicaid)
Chapter 55 of title 10, United States Code (Champus)
A medical care program of the Indian Health Service or of a tribal organization
A state health benefits risk pool
A health plan offered under chapter 89 of title 5, United States code (Federal Employee Health Benefit Plan)
A public health plan (as defined in regulations)
A health benefit plan under section 5(e) of the Peace Corps Act