Understanding of Health Insurance – Short Term Coverage
March 31st, 2010 Posted by: admin
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.
In addition to those people who have recently been laid off or terminated, temporary insurance is useful to those who have found new employers that require them to wait through a probationary period before being eligible for a new plan. In the event that you’ve switched jobs are subjected to a 30-90 period preceding insurance eligibility, alternatives to COBRA insurance can protect you and your family in the event of injury or illness.
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 COBRA insurance alternatives 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 COBRA insurance alternatives 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.
Often times, people who’ve recently left their jobs don’t consider short term medical coverage because they’re eligible for COBRA coverage. They may be missing an opportunity though, as COBRA has several drawbacks that may outweigh its convenience.
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.
As such, you’d be advised to carefully decide whether COBRA or COBRA insurance alternatives makes the most sense for you. Read more about short term medical coverage online, or contact an insurance representative today to learn more details about the types of policies available. The right plan can easily be found based on a simple review of your needs.
Dan Miller likes to write about alternatives to COBRA insurance
