Short Term Coverage

• Shortened medical plans can have restrictions & premiums are proportionately higher
• Employers do not want risk of short-term employees working without some protection
• Travel insurance is often the easiest & most practical answer for short-duration cover

International Medical Insurance and HealthCare plan companies rarely offer “short-term” plans. Usually they insist on annual term but do allow groups with periodic in and out movements of members to be an exception to the rule. Group accounts can be set up to accept high turnovers of employees if it is pre-negotiated with the Plan Company. Estimates of such turnovers should be disclosed so that the Plan Company can properly set premium rates for this group segment. It is not uncommon for a plan to have a short-term rate schedule that was pre-arranged and mutually accepted. These short-term rates will be higher than those within a normal group account on a monthly comparative basis. They must be higher because claims statistics justify so. Also, other restrictions on cover may be levied on enrollees.

Employers feel uneasy when people work for them for short periods and may not be insured. They want to imagine that these people are in good health when beginning their work, too. By having a short-term medical plan in place the workers must complete application and qualify for entry into the plan. If accepted then the assumption is that they are in reasonable health and are now protected. If not then the insurance company would refuse to insure the applicant. In some countries employers are liable for short or long-term contractor’s medical care needs as well as other emergency situations as death, repat, etc.

People traveling away from their normal residence (outside home country) can be insured for short durations by a travel accident policy. It provides some medical protection but the limit is lower than a regular medical plan. Travel insurance was not designed to replace a medical plan but rather to supplement it whilst traveling. Premiums are low because healthy people usually travel plus it only covers medical cases occurring whilst traveling and not those that are pre-existing. Travel can be on a per trip basis of up to 6 months. It covers medical expenses, baggage, personal money, trip cancellation, medical evacuation, repatriation, delayed baggage, hospitalization daily cash payments and other travel issues. Policies can include personal liability and even car rental cover. It must be purchased before traveling.