Finding a alternative to COBRA
Carmen knows that going without health insurance can be a financial disaster to her family, so when she lost her job as a sales person she looked at all her options. Carmen has no idea how long she may be out of a job so she does not want to go uninsured.
COBRA is mandated for employers with 20 or more employees. It mandates that they must allow past employees maintain their health insurance for at least 18 months if they so choose. This option tends to be very costly however!
The reason COBRA is expensive is due to a few things. First, you pay the total premium (what you had paid, plus the employer contribuation). Second, they often add administrative fees on top of that.
When looking into your options there are a few things to consider. One is your pre exisiting conditions. If you have an illness that requires medical attention or medications. Then you should opt for COBRA.
Most temporary medical plans will not cover pre existing conditions. For this reason Carmen should try to keep her COBRA insurance. But, there is no reason she shouldnt look for something more affordable for her husband.
Health is one of the factors to consider when looking into COBRA alternatives. But there are a few more things to consider. Here are just a few:
1. What if you only purchase 6 months and then you find yourself needing longer. You will either be srambling around for more or you will have to reapply for the same one. This may not be something you care to deal with.
2. Temporary health insurance does come with exclusions. It is not going to cover any pre existing conditions. Hence, the reason it is not a good idea for Carmen. If her husband develops an illness and then you have to extend the temporary insurance he will no longer be covered for that illness.
3. Temporary health insurance was designed to be a major medical safety net. It is not going to cover the common visit to the doctors office. The plans usually have high deductibles to meet also. So you can expect to pay some out of pocket costs.
COBRA is mandated for employers with 20 or more employees. It mandates that they must allow past employees maintain their health insurance for at least 18 months if they so choose. This option tends to be very costly however!
The reason COBRA is expensive is due to a few things. First, you pay the total premium (what you had paid, plus the employer contribuation). Second, they often add administrative fees on top of that.
When looking into your options there are a few things to consider. One is your pre exisiting conditions. If you have an illness that requires medical attention or medications. Then you should opt for COBRA.
Most temporary medical plans will not cover pre existing conditions. For this reason Carmen should try to keep her COBRA insurance. But, there is no reason she shouldnt look for something more affordable for her husband.
Health is one of the factors to consider when looking into COBRA alternatives. But there are a few more things to consider. Here are just a few:
1. What if you only purchase 6 months and then you find yourself needing longer. You will either be srambling around for more or you will have to reapply for the same one. This may not be something you care to deal with.
2. Temporary health insurance does come with exclusions. It is not going to cover any pre existing conditions. Hence, the reason it is not a good idea for Carmen. If her husband develops an illness and then you have to extend the temporary insurance he will no longer be covered for that illness.
3. Temporary health insurance was designed to be a major medical safety net. It is not going to cover the common visit to the doctors office. The plans usually have high deductibles to meet also. So you can expect to pay some out of pocket costs.
About the Author:
Are you are need of temporary health insurance or would like to know more about your options call Broker Jeff Cline. He is an professinal at COBRA alternatives. Are you decide you would like permanent individual health insurance he can help you with that also. He can be contacted anytime at his toll free number 866.526.9669.
posted by Credit Counseling at
10:07 AM
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