Monday, December 27, 2010

Why is short term health insurance so expensive?

Why is that it is 10x more expensive for health insurance for terms less than 180 days? Could one not just sign up for long term coverage and then cancel?
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There is probably a higher risk of someone signing up for short term just to use it a couple of times, making it harder for the company to recoupe the money from the bills.
Source

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