Short-term health plans are a great way to protect yourself against expensive medical bills during a lapse in health coverage. These plans typically last less than a year; you can purchase them for a few weeks or months.
If you've missed open enrollment or are between jobs, short-term health plans can be excellent options. However, since these plans aren't ACA-compliant, they don't cover essential health benefits, and insurers can deny coverage for pre-existing medical conditions.
In South Dakota, Everest Reinsurance Company and UnitedHealthcare offer the best short-term plans, with scores of 85 and 80, respectively. However, the best plan for you may differ based on your situation.
Short-term plans are not substitutes for marketplace plans that provide essential health benefits. If cost is an issue, explore subsidies that can help you find a long-term marketplace plan with better coverage than a short-term one for the same cost.
Best Companies for Short-Term Health Insurance in South Dakota
To determine the best short-term health insurance companies, MoneyGeek analyzed the pricing, plan options and cost-sharing choices for thousands of plans. Within each state, plans were aggregated by company to compile an overview of a short-term health insurance provider. In determining the best short-term providers for specific categories, weights were redistributed to take into account the goal of the health insurance plan.
Please be advised that the costs provided are averages. Actual rates will vary based on consumer profile and location.
Best Overall Short-Term Health Insurance in South Dakota
According to MoneyGeek’s analysis, Everest Reinsurance Company offers the best short-term health insurance in South Dakota, scoring 85 out of 100. The following companies also offer great short-term plans:
- UnitedHealthcare: 80 out of 100
- National General Accident & Health: 60 out of 100
We chose these companies after analyzing their average maximum out-of-pocket costs and various cost-sharing options.
With a MoneyGeek score of 85 out of 100, Everest Reinsurance Company is the best option for short-term medical insurance in South Dakota. Founded about 50 years ago, the company offers insurance and reinsurance products in the U.S. and many other countries.
Everest Reinsurance Company provides several plan options and offers flexible coverage lengths, deductibles, copays, co-insurance and coverage period maximums. Persons aged 18 to 65 are eligible for its plans, while the company also offers child-only coverage for ages 2 to 25. The company doesn’t cover pre-existing conditions or non-hospital prescriptions.
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You might want to go without health insurance for a few months rather than get a short-term health plan. MoneyGeek advises against this. If you have an accident or need emergency surgery, you could end up with thousands of dollars in medical bills.
Best Cheap Short-Term Health Insurance
Based on MoneyGeek’s analysis, Everest Reinsurance Company offers the cheapest short-term health insurance in South Dakota, with an average maximum out-of-pocket cost (MOOP) of $7,958.
Choosing the cheapest plan will lower your monthly insurance costs; however, you’ll pay more out of pocket. Before purchasing an inexpensive plan, ensure it provides sufficient coverage for your needs.
MoneyGeek found that Everest Reinsurance Company is also the ideal option for those looking for cheap short-term health plans. The company has low out-of-pocket costs and provides various co-insurance options, making it easy to choose a plan based on your financial situation.
Since short-term plans don’t offer essential health benefits and may deny you based on your pre-existing conditions, they are not substitute replacements for marketplace plans. Instead, they are ideal for protecting you against medical expenses due to a catastrophic event. Short-term insurers can also decline to renew your policy if you develop a health condition.
Best Short-Term Health Insurance Between Jobs
You might want to opt for the cheapest health insurance while between jobs. However, know that such plans have higher out-of-pocket maximums. Cheap short-term plans are only suitable if you don’t need much medical care.
The following insurers offer the best short-term health insurance between jobs based on their monthly premiums and cost-sharing options.
- Everest Reinsurance Company: $131 per month
- National General Accident & Health: $137 per month
- Independence American Insurance Company: $174 per month
Since Everest Reinsurance Company has the lowest monthly premium and offers the most plan options, it’s our top choice for short-term health care insurer between jobs.
Everest Reinsurance Company offers insurance and reinsurance products in many countries. However, its short-term health insurance plans are only available in 25 U.S. states. The company offers various options for deductibles, copays, co-insurance and out-of-pocket maximums. Its plans come with a free-look period and allow you to prepay or pay monthly. However, the company’s plans have an extended waiting period and do not cover prescription drugs.
You can extend short-term health coverage if your job’s start date is delayed or if there are only a few months until open enrollment. However, MoneyGeek doesn’t recommend continuously choosing short-term plans over marketplace plans. If the cost of a plan matters to you, you can explore many affordable marketplace plan options that cover essential benefits.
How Does Short-Term Health Insurance Work in South Dakota?
Before buying a short-term plan, it’s essential to understand how these work in South Dakota. A short-term health plan is the best option if you have a lapse in coverage. They usually last a few months and are not substitutes for marketplace plans.
In South Dakota, you can purchase short-term insurance for up to 364 days and renew it up to three times.
How to Buy Short-Term Health Insurance in South Dakota
The process of buying short-term health insurance in South Dakota can be overwhelming. MoneyGeek recommends you follow these steps as you shop for a plan.
Determine How Long You Need Coverage
Before looking for a plan, analyze your situation and determine how long you’ll need coverage. For instance, if you want short-term coverage while switching jobs, how long until the new job begins?
Assess Your Health Care Needs
Evaluate your health situation and care needs. Assess whether you need prescription drug coverage or an emergency care plan. Understanding these factors will help you choose the right plan based on your situation.
Research Providers and Available Plans
Once you understand your needs, research short-term insurance providers and available plan options. Shop around and compare different plans to find the ideal one.
Short-term health insurance plans and marketplace plans differ in many ways. Short-term plans usually don't provide essential health benefits or cover pre-existing conditions. On the other hand, marketplace plans cover preventive care and pre-existing conditions. These plans provide long-term coverage and require purchase during the open enrollment period unless you meet qualifying circumstances.
FAQs About Short-Term Health Insurance in South Dakota
MoneyGeek answered the following frequently asked questions about short-term health insurance in South Dakota to help you to understand what it covers and how it works in the state.
About Brenna Kelly, Licensed Health Insurance Agent
- Everest. "Short-term Medical." Accessed August 16, 2022.