When situations call for the loss of a job, the prime thing on most people’s minds is: What will I do for health insurance? Short term health insurance provides a viable solution, with its flexible options. Helping out in times of need, it is truly a friend of those who would otherwise be uninsured.
Short term medical insurance is ideal for those who are recent graduates, in between jobs, waiting for employer insurance to kick in, and part-time employees. Early retirees can also purchase alternatives to COBRA insurance to tide over the period before Medicare benefits can be availed.
The first option that comes to mind when someone loses employment is COBRA insurance. The general perception of COBRA continuing coverage sometimes makes people think that the rates will remain the same, but the rates increase as soon as the employer-sponsored part ceases. That makes COBRA coverage more expensive than employer-sponsored and even health insurance for unemployed.
Short term health insurance does not feature lengthy underwriting procedures, and typically, coverage begins the day after application. It is perfect for those with temporary health insurance insurance needs, especially people with no significant pre-existing conditions, which are not covered by temporary health insurance.
The benefits of alternatives to COBRA insurance are typical: unplanned medical issues and injuries, including, but not limited to, ambulance services, hospital room and board, diagnostic tests, medical prescriptions, and surgery. Many plans also cover scheduled physician check-ups, depending on the options and deductibles.
Exclusions of alternatives to COBRA insurance plans are pregnancy, eye and dental care, and any surgery considered elective or experimental. As mentioned earlier, pre-existing conditions are also not covered.
When you opt for short term health insurance, you can choose from a range of plans and options. Not only does the maximum benefit amount differ by plan, applicable deductibles and co-pays can be customized as well. If you are an early retiree, for example, the plan you end up with will be very different than that of a young part-time employee.
When you purchase short term health insurance, you might be tempted to continue on it for a long time. However, it is designed for short periods, and you must ideally not exceed a year or so in short term coverage. If your insurance situation is uncertain, you can renew the plan monthly, for the maximum period specified in the plan.
Dan Miller enjoys writing about temporary health insurance
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