What I Learned Today

On sabbatical from my job, and no longer a student, I’m for the first time in a position where I need to find my own health insurance. I started seeking out options to provide at least catastrophic coverage in case anything should happen during this period. Happily, it turns out that there are some providers that offer exactly what I need: short-term coverage for otherwise healthy people while between jobs (or for students who’ve just graduated, etc.).

Previously I knew about PPOs and HMOs, but short-term insurance is a third kind: indemnity. This means that you’re not restricted to any particular network, but can instead go wherever you want. You simply specify the deductible you’re willing to absorb, and how many days you want coverage for (usually up to 180), and pay the specified amount. After the deductible is met, these plans generally cover either 50% (or 80% for a higher rate) of additional expenses. The nice thing is that you can get your policy activated almost immediately, since there is no underwriting or health exam involved. Essentially, insurance is reduced to its bare essentials: protection against a major event. Pre-existing conditions are *not* covered.

The two main options I identified for coverage in Oregon are Regence and PacificSource. The rates were almost identical (about $1.75/day for a $1000 deductible). Regence was a little better about providing details on what was and was not covered up front, so they got my business.

I’m pleased to have learned that there is a niche type of insurance that provides just what I needed. If I’d had to sign up for a “regular” individual policy, the rates would have been a lot higher, and I was told it would take weeks to get it set up. The coverage probably would be a little more extensive (e.g., copays for prescriptions and doctor visits rather than having to use up your deductible first), but for a short-term solution, I think this is just right.