One byproduct of the terrible job losses seen throughout the United States during the current economic downturn has been the increased need for alternatives to COBRA insurance. Being without health insurance is simply not an option for most Americans, particularly those with families, so short term insurance can provide a more affordable way to meet those needs.
Temporary insurance is not only for people who have recently lost their jobs, but also for those who have recently switched jobs and are waiting to complete their probationary periods. Many employers still have 30-90 day periods under which new hires are not covered by insurance. In these circumstances, temporary health insurance provides a valuable safeguard against illness and injuries.
When obtaining short term coverage, you’ll want to be aware of its limitations. Preventative coverage and wellness checks are not covered under COBRA insurance alternatives. It’s simply designed to offer a support for sudden sicknesses and injuries.
Pre-existing conditions are also not covered. Keep this in mind as you apply for coverage, both so that you know what to expect going in and also so that you can answer the application honestly. Temporary insurance policies typically have a number of requirements and limiting factors, so you’ll want to pay very careful attention to all the accompanying terms and conditions.
Items that can be customized to suit your needs on alternatives to COBRA insurance plans are the overall length and the deductible. Short term plans may be purchased for 1-6 months, or could even be extended to 12 months, based on need. Discuss adjusting the length and deductible with your plan representative at the time of purchase.
Because COBRA coverage is generally fairly convenient, many people who’ve changed jobs or lost their jobs don’t consider shot term medical coverage. However COBRA has some clear disadvantages that should be considered before making a decision.
COBRA allows a terminated employee to retain health insurance coverage through their former employer’s provider for up to 18 months. COBRA coverage can be applied to your family members as well. While this seems like a great benefit, it’s an expensive, one, with the user often having to pay 100% of premiums as well as administrative fees. The nonprofit group Families USA reports that COBRA costs can consume up to 84% of average monthly unemployment wages.
In that case, short term health insurance may be a better option. To see if short term health insurance is right for you, contact your former or pending insurance representative, or search for additional information online. Discuss your unique situation and needs, and find the temporary insurance solution that is right for you.
Dan Miller enjoys writing about short term medical insurance
categories: insurance,health,finance,business,family,unemployed,unemployment,medical insurance