One byproduct of the terrible job losses seen throughout the United States during the current economic downturn has been the increased need for COBRA insurance alternatives. 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.
Workers who have recently taken on jobs at new employers are still sometimes faced with probationary periods that they must pass before gaining eligibility for company benefits. These periods can last from 30-90 days, and a good number of medical emergencies could arise in that time. Temporary insurance provides protection for accidents and emergencies during these windows of time.
Before purchasing short term coverage, you should be aware that it’s by no means a comprehensive plan. Preventative measures like general wellness visits are not covered in short term health insurance policies. Instead, you’ll find that only injuries and illnesses are covered.
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.
As you decide what level of alternatives to COBRA insurance plan coverage you’ll need, think first about how long you’ll need it. It’s usually available in durations anywhere from 1-6 months, but you can also extend some policies to 12 months. Your plan administrator can offer more information. Also consider what sort of deductible you’d like to have in place, as that factor can be altered to suit your needs as well.
People who have quit or been fired from their previous job may be eligible for COBRA coverage, and as such may never even consider short term medical coverage. However, they’d be wise to weigh the pros and cons of each, because while COBRA may seem convenient, there are some significant drawbacks to it.
Although a former employee can keep their old insurance plan for as long as 18 months after termination, that convenience can prove to be pricey. As much as 100% of the resulting premiums may need to be paid, and there are usually expensive administrative fees added onto the bill. Up to 84% of a family’s average unemployment benefits may be used on COBRA premiums, according to the nonprofit group Families USA.
In that case, alternatives to COBRA insurance may be a better option. To see if alternatives to COBRA 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
Tags: business, family, finance, health, health insurance, insurance, Medical insurance, unemployed, unemployment