When people find themselves suddenly unemployed, health insurance tops their list of “concerns.” In such situations, it is worthwhile to look at COBRA insurance alternatives, with its myriad features, as a possible option.
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 COBRA insurance alternatives to tide over the period before Medicare benefits can be availed.
As soon as you lose employment, voluntarily or not, the one avenue for health insurance that strikes you is COBRA insurance. While COBRA continues long-term coverage without a break, it is expensive, sometimes even beating health insurance for unemployed in cost.
If you are put off by the lengthy underwriting processes characteristic of long term insurance, COBRA insurance alternatives offers just the opposite experience: simple and easy underwriting, with plans becoming valid as early as the next day. If you have any pre-existing conditions, though, they will not get short term health insurance coverage.
Short term insurance covers most sudden medical illnesses and accidents. Plans usually include coverage for outpatient care, hospitalization, diagnostic tests, surgery, and ambulance charges. Doctor visits are also covered by most plans, subject to the applicable deductible and co-pay.
If you purchase a temporary health insurance plan, you will not be covered for pregnancy and maternity, and most optical and dental treatment. Cosmetic surgery, unless performed as part of reconstruction therapy, is also not covered, along with previously existing conditions.
Short term insurance plans come in many flavors, and each plan usually features many deductibles and co-pays to choose from. Plan premiums also depend on the maximum coverage chosen, so that different folks can choose different plans that work for them.
When you purchase alternatives to COBRA 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 frequently writes about short term health insurance
Tags: business, cheap insurance, cobra, family, Finance, health, health insurance, healthcare, insurance, medical insurance, temporary insurance